It's been an outstanding year to date for ASX energy stocks Yancoal Australia Ltd (ASX: YAL) and Whitehaven Coal Ltd (ASX: WHC).
Yesterday, both continued to climb, rising between 6.6% and 10.5%.
These Australian coal miners have been rising recently as the conflict in the Middle East has sent thermal coal prices soaring.
Experts are anticipating that some countries – particularly in Europe – may rely more heavily on coal-fired power generation if gas shortages materialise.
This is helping boost sentiment around these Australian coal mining companies.
Year to date, Yancoal shares are now up almost 54%.
Meanwhile, Whitehaven Coal shares are up nearly 19%.
Investors on the outside looking in may be wondering if there is more upside, as both are hovering around 52-week highs.
Here's what experts are anticipating.
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Can Yancoal keep rising?
Yancoal is a coal miner involved in identifying, developing, and operating coal-related projects in Australia. It has a diversified mix of metallurgical and thermal coal mines.
It owns, operates, or participates in 11 coal mines across NSW, Queensland, and Western Australia.
After a 10% climb yesterday, it closed trading at $7.71.
However, the general consensus is that this ASX energy stock is now fully valued.
Based on 4 analyst ratings via TradingView, fair value for Yancoal shares would be in the range of $6.94 to $7.48.
From current levels, this would suggest a decline between 3% and 10%.
Of course, continued conflict in the Middle East could continue to push commodity prices higher, which would ultimately benefit Yancoal.
However, for those that have held Yancoal shares through the recent rally, it could be an opportunity to take profits.
Is it time to sell Whitehaven Coal shares?
Whitehaven is another Australian-based coal miner that exports high-quality thermal coal (primarily used to generate electricity) and metallurgical coal (primarily used for steel making) from Australia to Asia.
Its main focus is in the Gunnedah Basin in northwest New South Wales, where it operates four mines.
It closed trading yesterday at $9.29 per share after a 6.6% rise.
It is now up almost 58% in the last year.
However, it could also now be fully valued.
The team at EnviroInvest recently put a sell rating on this ASX energy stock.
Last month, the team at Bell Potter had a hold rating and price target of $8.10.
15 analysts forecasts via TradingView have an average one year price target of $8.61 on Whitehaven coal shares.
These targets indicate a downside between 7% and 13%.
