Whitehaven Coal Ltd (ASX: WHC) is one of the largest ASX energy companies in Australia.
The Australian-based coal miner exports thermal coal (primarily used to generate electricity) and metallurgical coal (primarily used for steel making) from Australia to Asia.
It has been one of the ASX energy stocks that has missed out on broader sector gains in 2026.
Year to date, Whitehaven Coal shares are down 7%.
However, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 25% in that same period.
Whitehaven Coal did not move in line with the broader energy sector in 2026. This was primarily because it is a coal producer, whereas many ASX energy stocks that drove the sector higher are oil and gas companies
Yesterday, the ASX energy giant released a quarterly update, which has prompted positive outlooks from brokers.
Image source: Getty Images
What did the company report?
As reported yesterday by The Motley Fool's Laura Stewart, Whitehaven's Queensland and New South Wales operations both finished FY26 at the top end of their production and sales targets.
In Queensland, June quarter ROM production jumped 41% quarter-on-quarter, recovering strongly from earlier weather disruptions. New South Wales managed to grow its yearly ROM output by 6%.
Additionally, the company continued its share buy-back program, repurchasing 10.1 million shares worth A$77 million for the year.
Investors were seemingly pleased with the announcement, as the ASX energy stock rose 1.8% following the release.
What is Morgan's updated view?
Following the announcement, the team at Morgans provided updated guidance on Whitehaven shares.
The broker said the company delivered in FY26 with ROM Coal production and Coal Sales coming in at the top end of guidance, while unit costs and capex tracked towards the lower end of their respective ranges.
Recent refinancing has lowered funding costs and extended debt maturities, leaving WHC better placed to navigate commodity market volatility and focus on FY27 operational delivery.
A strong rebound from Blackwater and Daunia drove an inline ROM Coal production result, highlighting the production leverage power of the Queensland portfolio and more than offsetting ongoing operational challenges at Narrabri. We upgrade our rating to BUY (previously ACCUMULATE) following recent share price weakness, but with a reduced price target of A$8.50ps (previously A$9.20ps).
Upside intact
Despite lowering its price target, it appears Morgans still sees strong upside for this ASX energy stock.
From yesterday's closing price of $7.26, the updated target indicates an upside potential of 17%.
