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Investing.com - BMO Capital raised its price target on GrafTech (NYSE:EAF) to $1.50 from $1.00 on Tuesday, while maintaining a Market Perform rating on the stock. The company’s shares, currently trading at $1.64, have shown remarkable momentum with a 19.71% gain over the past week, according to InvestingPro data.
The price target increase follows GrafTech’s delivery of positive EBITDA in the second quarter of 2025, which BMO attributed to slight improvement in prices, market share gains, and better-than-expected cost management. However, InvestingPro analysis reveals the company faces challenges with significant debt burden and weak gross profit margins, with EBITDA at -$30.2M for the last twelve months.
BMO noted that GrafTech’s near-term focus remains on controllable factors, specifically commercial activity and cost management, despite the generally challenging market environment.
The firm made minor adjustments to its estimates for GrafTech but increased the price target based on slightly improved sentiment and outlook for the company.
BMO specifically highlighted GrafTech’s success in gaining market share in the United States and its effective cost management strategies as key factors supporting the revised price target.
In other recent news, GrafTech International Ltd reported a net loss of $87 million for the second quarter of 2025, equating to a loss of $0.34 per share. This performance was notably lower than the adjusted EBITDA of $3 million, a decrease from $14 million in the same period last year. Earnings per share (EPS) were -$0.16, which did not meet analysts’ expectations of -$0.13. Revenue also fell short of projections, reaching $132 million compared to the anticipated $132.65 million. These financial results have drawn attention from investors and analysts alike. Despite the challenging quarter, GrafTech continues to navigate its financial landscape amid these recent developments.
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