The broker believes New Hope Corp can deliver a robust underlying earnings result tomorrow and announce a small dividend, and steadily de-gear in a bearish scenario. Target falls to $1.75 from $3.20 but the stock offers 50% upside to the broker's revised valuation on Bengalla cash flows alone, meaning investors are getting hard assets and growth options for free.

Add retained. Compelling value is on offer, the broker suggests, for patient, through-the-cycle investors.

Sector: Energy.

Target price is $1.75.Current Price is $1.05. Difference: $0.70 - (brackets indicate current price is over target). If NHC meets the Morgans target it will return approximately 40% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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