JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, Jefferies analyst Christopher LaFemina updated the investment firm’s outlook on Warrior Met Coal (NYSE:HCC), lifting the price target to $67.00 from the previous $62.00 while reaffirming a Buy rating on the shares. The company, which maintains a strong financial position with a current ratio of 5.2 and minimal leverage (debt-to-equity of 0.08), saw this adjustment following an announcement last Friday regarding its Blue Creek project. According to InvestingPro data, analyst targets for HCC range from $62 to $86 per share.
Warrior Met Coal recently shared a positive development about Blue Creek, revealing an expansion in the project’s planned capacity. The company has upscaled its capacity target to 6.0 million short tons per annum (mstpa) from the initial 4.8 mstpa without incurring additional capital expenditure. Trading at an EV/EBITDA multiple of 5.6x and P/E ratio of 10.6x, this strategic move is anticipated to enhance the company’s EBITDA (currently at $415 million), free cash flow (FCF), and capital returns.
The Blue Creek project is on track to be operational in the first half of 2026. Although there are concerns about the overall coal market fundamentals, the analyst believes that the Blue Creek initiative represents a significant shift for Warrior Met Coal, solidifying its position as the preferred choice in the U.S. coal sector. InvestingPro analysis shows the company has been consistently profitable over the last twelve months, with analysts predicting continued profitability this year.
The analyst’s commentary highlighted the potential financial benefits that the increased capacity at Blue Creek could bring to Warrior Met Coal. With no additional capital expenditure required for the expansion, the project promises to be a cost-effective way to boost the company’s financial performance.
Warrior Met Coal’s stock could see an impact from these developments as investors digest the implications of the Blue Creek project’s increased capacity and its expected contribution to the company’s future growth. With the project set to be fully online within the next three years, Warrior Met Coal appears to be making strategic moves to strengthen its market position and financial stability.
In other recent news, Warrior Met Coal reported fourth-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $0.15, significantly lower than the $0.81 consensus estimate. Revenue for the quarter was $297.47 million, also falling short of the expected $305.04 million. The company attributed these results to a 34% year-over-year decrease in steelmaking coal prices. Additionally, Warrior Met Coal provided guidance for 2025, estimating coal sales between 8.2 and 9.0 million short tons and production of 7.8 to 8.6 million short tons. In a positive development, the company announced an increase in the Blue Creek project’s nameplate capacity by 25% to 6 million short tons annually, potentially adding $1.3 billion in revenue. B.Riley analyst Lucas Pipes adjusted Warrior Met Coal’s price target to $86 from $90, maintaining a Buy rating despite the company’s fourth-quarter earnings being below expectations. The analyst noted that the production outlook for 2025 appears conservative but appropriate given the current market conditions. Despite these challenges, Warrior Met Coal declared a quarterly dividend of $0.08 per share, payable on March 3.
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