Benchmark cuts Ramaco Resources stock target to $18, maintains Buy

Published 12/03/2025, 15:20
Benchmark cuts Ramaco Resources stock target to $18, maintains Buy

Wednesday - Benchmark analyst Nathan Martin revised the price target for Ramaco Resources Inc . (NASDAQ: NASDAQ:METC) stock, lowering it to $18.00 from the previous $20.00, while reiterating a Buy rating for the company. The stock, currently trading at $10.14, has shown remarkable momentum with a 28.54% gain in the past week. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment, with analyst targets ranging from $14 to $20.

Ramaco Resources announced their fourth-quarter adjusted EBITDA at $29 million, surpassing the high estimate of $24 million set by analysts. This performance was attributed to improved cash cost per ton. The recent commencement of operations at the Maben preparation plant has significantly reduced net trucking costs by over $20 per clean ton. There is potential for further reductions of approximately $20 per ton if Ramaco decides to proceed with the construction of a rail loadout facility. InvestingPro data shows the company maintains a strong financial health score of GREAT, with particularly robust scores in profitability (3.76) and cash flow (3.16).

For the full year of 2025, company management has confirmed all previous targets, with the exception of a 5% increase in the effective tax rate guidance. The first quarter is anticipated to be the weakest due to extreme weather conditions and unfavorable market dynamics. Despite these challenges, Ramaco ended the year with record liquidity and management indicated that the company could potentially increase its market share or pursue asset acquisitions if suitable opportunities arise.

Additionally, Ramaco is progressing with its analysis of the rare earth and mineral deposit at its Brook Mine. Due to lab delays, the complete technical and economic analysis is now expected to be delivered by the end of April. The company is planning to conduct bench tests for a pilot demonstration process and, if successful, aims to commence construction of a facility adjacent to the mine in late summer. The capital expenditures for this project have been factored into the current fiscal year 2025 guidance, with Ramaco noting that only $10 million has been spent on the project so far. For deeper insights into Ramaco’s investment potential and comprehensive analysis of its rare earth project’s impact on future valuations, explore the detailed Pro Research Report available on InvestingPro, which offers expert analysis of 1,400+ top stocks.

In other recent news, Ramaco Resources reported strong fourth-quarter results, leading to a significant increase in investor interest. The company posted adjusted earnings per share of $0.06, a notable improvement from a loss of $0.03 in the previous quarter. Revenue rose to $170.9 million, marking a 2% sequential increase. Ramaco achieved record quarterly sales volume of over 1.1 million tons while reducing cash costs to $96 per ton, down from $102 in the third quarter. This contributed to a 24% increase in adjusted EBITDA, reaching $29.2 million. The company reiterated its 2025 production guidance of 4.2-4.6 million tons and sales guidance of 4.4-4.8 million tons. Ramaco also expects first-quarter 2025 sales of 850,000-950,000 tons, with a projected 33% sequential rise in second-quarter shipments. Management expressed optimism about potential price increases in 2025, especially if new steel import tariffs are introduced.

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