New Hope Corporation Limited (ASX: NHC) shares joined the broader sell-off today, but remain up 24% over the past month. A month that saw the S&P/ASX 200 Index (ASX: XJO) lose 4%.
Year-to-date that number is even more impressive, with the ASX 200 coal miner up 190% while the benchmark index fell 12%.
New Hope, as you're likely aware, has benefited greatly from the soaring price of coal amid a global energy crunch. Particularly thermal coal, which hit record highs this year and is still trading at a historic high of US$385 per tonne.
But with those kinds of gains already in the bag, is it too late to buy New Hope shares?
Is it too late to buy the stock?
According to Morgans, investors can likely still buy New Hope shares and look to bank some solid gains.
The broker retained its add rating on the coal miner and increased its target for the New Hope share price to $7.20. That's 6.7% above the current price of $6.75 per share.
Morgans' bullishness stems from coal prices coming in above expectations, along with the potential approval of the Associated Water Licence (AWL) at its New Acland Mine in Queensland. It said this "under-recognised catalyst" could add 70 cents per share to the miner's value.
Braden Gardiner, from Tradethestructure, has a hold recommendation on the miner, but he does expect New Hope shares "to remain in an uptrend".
According to Gardiner (courtesy of The Bull):
The share price has soared this calendar year on the back of booming coal prices. A big dividend increase announced at its full year 2022 results generated further support from income investors. In the absence of a short-term solution to the energy crisis, I expect NHC to remain in an uptrend.
New Hope shares pay a trailing dividend yield of 3.5%.
How have New Hope shares been tracking longer-term?
ASX 200 investors who bought New Hope shares five years ago will be sitting on a gain of 247% today. That compares to a 15% gain posted by the ASX 200 over that same time.
