Investment firm B. Riley has revised its price target for Warrior Met Coal (HCC, Financial), reducing it from $86 to $76, while maintaining a Buy rating on the shares. This adjustment comes as the firm also lowers its Q1 estimates for metallurgical coal companies by an average of 29% ahead of upcoming earnings reports.
In anticipation of the quarterly results, investors are expected to keep a keen eye on profit margins, especially in light of prevailing market conditions. There is a focus on the potential for production cuts later in the year if these conditions persist or deteriorate.
B. Riley also highlights ongoing shifts in the market, such as the re-routing of U.S. metallurgical coal exports to China. However, the possibility of new tariff regimes poses a potential risk, raising concerns about the impact on global economic growth and subsequent demand for metallurgical coal.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Warrior Met Coal Inc (HCC, Financial) is $65.20 with a high estimate of $76.00 and a low estimate of $55.00. The average target implies an upside of 48.99% from the current price of $43.76. More detailed estimate data can be found on the Warrior Met Coal Inc (HCC) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Warrior Met Coal Inc's (HCC, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Warrior Met Coal Inc (HCC, Financial) in one year is $47.65, suggesting a upside of 8.89% from the current price of $43.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Warrior Met Coal Inc (HCC) Summary page.