Following earnings season, broker Morgans has put a "buy" recommendation on ASX mining stock Whitehaven Coal Ltd (ASX: WHC).
It is one of the largest ASX energy companies by market capitalisation.
In FY25 the Australia-based coal miner reported:
- Revenue rose 53% to $5.8 billion
- Underlying EBITDA held steady at $1.4 billion
- Underlying NPAT of $319 million, down 57% year-on-year
- Statutory NPAT reached $649 million, up 83% from FY24
It also announced a final fully franked dividend of 6.0 cents per share.
These impressive results have helped the stock price rise 5% over the past month.
Zooming out further, it has had a steady year in 2025, rising just over 7%.
For context, the S&P/ASX 200 Energy Index (ASX:XEJ) is down 4% in that same span.
Image source: Getty Images
What did Morgans have to say?
On Wednesday, the broker said the FY25 result reaffirmed Whitehaven's current focus on stable and repeatable execution, helped by ongoing optimisation and cost reductions, and evident in similar production and reduced FOB cost guidance for FY26.
Morgans believes the current capital preservation efforts, and a strong balance sheet ensure that Whitehaven Coal will ride out the coal pricing downturn to play into the next coal price upswing, unlocking upside cashflow returns once again.
We show that WHC's share price infers the market is pricing in little to no upside in coal pricing, despite prices being below levels we think are sustainable.
What's the upside for this mining stock?
Morgans has a "buy" recommendation and target price of A$8.10ps.
The broker said it sees the stock as a compelling opportunity for patient investors.
From Friday's closing price of $6.76, this indicates an upside of 19.82%.
Morgans isn't the only broker tipping upside for this mining stock.
Online brokerage platform Selfwealth lists the stock as "undervalued" by nearly 10%.
Elsewhere, TradingView has a 12 month price target of $7.23. This indicates approximately 7% upside.
