Why is the Coronado share price leaping 9% on Thursday?

The Coronado Global Resources Inc (ASX: CRN) share price is on a tear, trading well into the green from the open today.

At the time of writing, shares in metallurgical coal producer are swapping hands for $1.852 apiece, a jump of 9.26%.

Let’s check what’s going on.

What’s up with the Coronado Global share price?

Energy players, including Coronado, are surging today in a complete reversal of yesterday’s wipeout.

The S&P/ASX 200 Energy Index (ASX: XEJ) is currently up 3.87%, making it the top performing sector so far — well ahead of the second-placed financials, just 0.94% higher.

Buyers have been active on energy stocks today amid a higher US inflation print on Tuesday and continued upside from the coal price.

In fact, coal has been the major commodity darling this year – along with its buddy, lithium – having advanced more than 150% in the past 12 months to a new record high of $460/tonne two weeks ago.

The heavy buying activity has stemmed from a number of factors, including robust demand, consistent supply disruption (largely owing to the war in Ukraine), and other inflationary trends.

For Coronado, the price action in the coal markets has resulted in strong gains for the year to date, as seen below.

This, and other industry tailwinds, has caught the eye of analysts at Macquarie, with the broker retaining its outperform rating in a recent note.

Macquarie reckons Coronado is a good way to for investors to gain exposure to the coal segment, albeit without the risk of holding the underlying commodity itself.

It values Coronado Global at $3.50 a share, suggesting there’s more than 100% upside if the broker gets it right.

In the last 12 months, the Coronado share price has gained 42%.

The post Why is the Coronado share price leaping 9% on Thursday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/ORsMPQz