In the wake of a disappointing guidance update from Whitehaven Coal, the broker has downgraded production forecasts and increased costs. Lower near term thermal coal price expectations also add to a target price decrease to $3.67 from $4.33.

The stock looks "far too cheap", the broker suggests, at a -30% discount to the broker's valuation but given several issues for the company at the moment, the broker expects investors to sit on the sidelines for now. Add retained.

Sector: Energy.

Target price is $3.67.Current Price is $2.62. Difference: $1.05 - (brackets indicate current price is over target). If WHC meets the Morgans target it will return approximately 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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