Morgans analyst, Tom Sartor, believes there is an interesting trade opportunity following a recent site visit to Whitehaven Coal's (WHC) operations. WHC has been beaten up recently on fears that its balance sheet may need topping-up in the event that coal markets don't improve and if Maules Creek is delayed further. Morgans' sensitivity research suggests that the market has overplayed these fears leaving a possible 40% upside in the stock. Morgans retain a Hold recommendation for the time being, however, the broker would look to upgrade WHC should the Company clear critical development and funding milestones in the coming weeks.
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