Guess which ASX 200 stock was downgraded to a sell rating

Bell Potter is bearish on this stock. Here's what it is saying.

Now could be the time to sell the S&P/ASX 200 index (ASX: XJO) share in this article.

That's because the team at Bell Potter has just put a sell rating on its shares and is warning of significant downside potential.

Frustrated man looking exhausted while sitting at his desk with his laptop and carrying his glasses in his hand.

Image source: Getty Images

Which ASX 200 share?

The share in question is coal miner New Hope Corporation Ltd (ASX: NHC).

Bell Potter notes that New Hope released its results this month and delivered a profit below expectations. It said:

Earlier this week, NHC reported FY26 underlying EBITDA of $514m (pre-reported) and statutory NPAT of $161m (BP est. $183m), below our estimates with higher finance expenses. In FY26, NHC realised an average price of A$145/t and average group FOB cash cost (excluding royalties) A$89/t (up 8% YoY) for an underlying margin of A$45/t, down 30% YoY with lower realised thermal coal prices. 

Though, one positive was that the ASX 200 share is paying a much larger than expected dividend despite the profit weakness. Bell Potter adds:

Operating cash flow was $564m and capex $193m for free cash flow $403m. A 30cps fully franked final dividend was declared (BPe 14cps, VA consensus 15cps), equating to $253m or 157% of statutory NPAT. At 31 July 2026, NHC had cash and liquid investments of $778m and debt (including leases) of $447m, for net cash of $332m. FY27 guidance was not released; NHC typically publish initial guidance with the October quarterly production report scheduled for November 2026.

Downgraded to sell

According to the note, Bell Potter has downgraded the ASX 200 share to a sell rating (from hold) with a $5.00 price target. 

Based on its current share price of $6.38, this implies potential downside of almost 22% for investors over the next 12 months.

Commenting on the downgrade, the broker said:

We have downgraded our NHC recommendation to Sell on recent share price appreciation. Our $5.00/sh Target Price already incorporates a 14% premium to our sum-of-the-parts valuation, reflecting NHC's leverage to global energy security themes amplified by recent geopolitical tensions. We expect energy markets will normalise over the near-term. Beyond the ramp-up of New Acland Stage 3, NHC has a limited organic production growth pipeline, and we expect earnings will peak in FY27. We expect NHC may participate in further industry consolidation as an acquirer.

Overall, this could make it worth keeping your powder dry for the time being and waiting for a better entry point down the line.

Motley Fool contributor James Mickleboro 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 Energy Shares

A woman holds her finger to the side of her lips in contemplation as she looks upwards to an array of graphic images of light bulbs above her head, one of which is on and glowing.
Energy Shares

Is the Woodside share price a buy following its dividend policy change?

Is the energy giant trading at attractive value?

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

Woodside shares slump 5% on Thursday: Buy, sell, or hold?

Find out what happened today, and what the experts tip next.

Read more »

A woman looks sideways at a graphic near her head reading CO2 with a downward arrow.
Energy Shares

Uranium price tipped to rise 38%. Here's why and which ASX shares brokers rate a buy

Here are the official forecasts for yellowcake and which uranium shares the experts rate a buy.

Read more »

A service station attendant crosses his arms and smiles towards the camera with a backdrop of petrol bowsers and a drive-through facility.
Energy Shares

Are Santos shares still a buy after latest oil price crash?

Here's what the experts think.

Read more »

Woman calculating dividends on calculator and working on a laptop.
Energy Shares

If I invest $5,000 in Santos shares today, what could they be worth by late October 2027?

Santos shares have boomed 45% higher over the past 12 months.

Read more »

Engineer in the oilfield wearing red helmet and work clothes, with pumpjack and wellhead in the background.
Energy Shares

Would I buy Woodside or Santos shares if oil prices remain high?

One has major new developments on the way, while the other is already seeing production growth.

Read more »

An oil worker holds his hands in the air in celebration in silhouette against a seitting sun with oil drilling equipment in the background.
Energy Shares

Can Woodside shares rally to fresh 52-week high?

Are the oil and gas major's shares a buy, sell, or hold now?

Read more »

Smiling oil worker in front of a pumpjack.
Energy Shares

Woodside Energy vs Beach Energy: Which ASX energy share is better for young investors right now?

Woodside Energy vs Beach Energy: which ASX energy stock looks best a 20 year old investor?

Read more »