Anglo Pacific Group PLC (LSE:APF, TSX:APY, OTC:AGPIF) has received a nudge upward to its share price target from Peel Hunt following its bumper interim numbers last week.
The broker said that while the strong figures had already been included in its forecasts, the one surprise was the reduction in debt, which at US$71mln was way above its forecasts.
Adding in the benefit of higher coal royalties from Kestrel in 2023, EBITDA estimates for 2023 rise by 16% but the impact of lower coal prices will mean that it is well below this year’s elevated levels.
“However, it should be noted that our average EBITDA forecast for 2023 and 2024 now sits at just over US$60m, before increasing again in 2025.”
Buy with a new target price of 230p (225p) is the broker’s view.