Baird initiates coverage on Ramaco Resources stock with Outperform rating

Investing.com - Baird has initiated coverage on Ramaco Resources Inc. (NASDAQ:METC) with an Outperform rating and a price target of $63.00 on Thursday. The stock has shown remarkable momentum, delivering a 377% return year-to-date according to InvestingPro data.

The research firm highlighted Ramaco’s position as a mining company founded in 2011 that currently operates four mines in the Appalachia region, primarily producing metallurgical coal. With a market capitalization of $2.8 billion, the company currently trades above its InvestingPro Fair Value, suggesting an optimistic market outlook.

Baird noted that Ramaco recently discovered its Brook Mine asset in Wyoming contains a significant deposit of heavy rare earth elements (HREEs) and other critical minerals.

The firm indicated that Ramaco has generated frequent investor inquiries related to its rare earth coverage, suggesting growing market interest in this aspect of the company’s operations.

Baird believes Ramaco is well-positioned to benefit as the United States works to develop domestic production capacity for these materials.

In other recent news, Ramaco Resources reported significant developments that could interest investors. The company has been approved as a member of the Defense Industrial Base Consortium, which will allow participation in federally funded research and production opportunities related to national defense. Additionally, Ramaco has strengthened its leadership team by appointing Martin van Wyk as Senior Vice President of Critical Minerals Processing, where he will lead efforts at the Brook Mine Project in Wyoming.

Lucid Capital Markets has initiated coverage on Ramaco Resources with a Buy rating, citing the company’s strong position in metallurgical coal mining and potential to nearly double its production levels. In governance updates, Ramaco announced the appointment of Jessica Graney to the Ramaco Foundation Board of Directors, alongside a $500,000 contribution to the Foundation. Furthermore, Mike Graney has been appointed as an independent member of the Board of Directors, bringing experience from his previous role in the West Virginia Department of Economic Development. These developments reflect Ramaco’s strategic efforts in expanding its capabilities and leadership to align with its growth objectives.

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