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On Thursday, UBS analyst Lachlan Shaw adjusted the outlook on Coronado Global Resources Inc. (CRN:AU), shifting the stock rating from Buy to Neutral. Along with the rating change, the price target was reduced to AUD0.19, down from the previous target of AUD0.31. Shaw’s analysis indicates that Coronado remains closely tied to the coal market, which is currently facing a less favorable outlook.
The downgrade follows Coronado’s first-quarter update for the fiscal year 2025, prompting UBS to revise its operational assumptions and financial projections for the company. Despite expectations that Coronado will achieve productivity and cost improvements throughout 2025, the firm anticipates margin pressures will delay longer-term growth and related capital expenditures.
Shaw’s report suggests that, after evaluating various scenarios, it appears Coronado will require additional funding. The reassessment has led to a substantial cut in earnings per share (EPS) predictions for the years 2025 and 2026. This revised financial forecast has been a crucial factor in UBS’s decision to adjust the stock rating and price target for Coronado.
The downgrade and new price target by UBS reflect the firm’s updated view on Coronado’s financial health and market position. The lower earnings projections and the need for further funding have contributed to a more conservative stance on the stock’s near-term potential.
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