The Whitehaven Coal Ltd (ASX: WHC) share price is up 2.66% on Wednesday as ASX resources shares rally.
At the time of writing, the ASX coal miner's shares are fetching $6.375 each after the company's share price hit an 11-year high of $6.46 earlier in the session.
There has been no news released by the company today. However, the broader resources sector is up, with the S&P/ASX 200 Resources Index (ASX: XJR) ascending 2.17% so far today.
Top broker Morgan Stanley sees a potential 30% upside in the Whitehaven share price.
It has increased its 12-month share price target for Whitehaven from $7.75 to $8.50.
Let's have a look at the reasoning behind its buy recommendation.
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Broker tips 30% jump in the Whitehaven share price
According to reporting by the Australian Financial Review, a team of analysts at Morgan Stanley say Whitehaven is a buy for three reasons.
The analysts, led by Rahul Anand, firstly point out that Whitehaven had a strong fourth quarter in FY22.
They add this "showed perhaps some of the operational issues faced in the past few years and is finally starting to improve".
The team also says there is "headroom available for resolutions for legal proceedings against previously approved Narrabri Stage 3 Extension, without facing significant future production disruptions".
Finally, the analysts point to an estimated dividend yield for FY23 of 19% on their base case.
Whitehaven hits highest price since 2011
The Whitehaven Coal share price lifted to its highest point since 2011 today, hitting $6.46.
It gives the ASX coal miner a market capitalisation of almost $6.1 billion.
