Why is the Coronado share price leaping 9% on Thursday?

The metallurgical coal producer is having a good day on the market today.

| More on:
A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Coronado Global Resources Inc (ASX: CRN) share price is on a tear, trading well into the green from the open today.

At the time of writing, shares in metallurgical coal producer are swapping hands for $1.852 apiece, a jump of 9.26%.

Let's check what's going on.

What's up with the Coronado Global share price?

Energy players, including Coronado, are surging today in a complete reversal of yesterday's wipeout.

The S&P/ASX 200 Energy Index (ASX: XEJ) is currently up 3.87%, making it the top performing sector so far — well ahead of the second-placed financials, just 0.94% higher.

Buyers have been active on energy stocks today amid a higher US inflation print on Tuesday and continued upside from the coal price.

In fact, coal has been the major commodity darling this year – along with its buddy, lithium – having advanced more than 150% in the past 12 months to a new record high of $460/tonne two weeks ago.

The heavy buying activity has stemmed from a number of factors, including robust demand, consistent supply disruption (largely owing to the war in Ukraine), and other inflationary trends.

For Coronado, the price action in the coal markets has resulted in strong gains for the year to date, as seen below.

TradingView Chart

This, and other industry tailwinds, has caught the eye of analysts at Macquarie, with the broker retaining its outperform rating in a recent note.

Macquarie reckons Coronado is a good way to for investors to gain exposure to the coal segment, albeit without the risk of holding the underlying commodity itself.

It values Coronado Global at $3.50 a share, suggesting there's more than 100% upside if the broker gets it right.

In the last 12 months, the Coronado share price has gained 42%.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »