Whitehaven Coal Ltd's stock plummeted 5.81% during intraday trading on Friday, reflecting significant selling pressure.
The sharp decline followed a bearish analyst note from UBS, which maintained a sell rating on Whitehaven Coal. UBS analysts see limited upside for metallurgical coal prices, expecting them to average $235/ton this year with a peak around $250/ton close to current spot levels. The firm cited Whitehaven's enterprise value-to-Ebitda multiple as being ahead of international competitors as a key concern.
UBS analyst Lachlan Shaw noted that with spot prices approximately at their estimated peak, there are limited upside catalysts for Whitehaven Coal outside of additional market-tightening events, contributing to the negative investor sentiment.