Jefferies raises Warrior Met Coal stock price target to $70 on Blue Creek ramp-up

Published 07/08/2025, 15:30
Jefferies raises Warrior Met Coal stock price target to $70 on Blue Creek ramp-up

Investing.com - Jefferies raised its price target on Warrior Met Coal (NYSE:HCC) to $70.00 from $53.00 on Thursday, maintaining a Buy rating following the company’s second-quarter earnings report. According to InvestingPro data, the stock has demonstrated strong momentum with a 6.75% return in the past week, trading near its Fair Value level.

Warrior Met Coal reported second-quarter EBITDA of $53.6 million, which significantly exceeded market expectations according to Jefferies. The earnings beat was primarily attributed to Blue Creek volumes entering the market earlier than anticipated. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 4.59, indicating robust liquidity management.

The earlier-than-expected Blue Creek production led to higher sales volumes and lower unit costs during the quarter, which offset weakness in realized prices for the metallurgical coal producer.

Jefferies noted that the ramp-up of the Blue Creek mine to full capacity will be "transformational" for Warrior Met Coal. The firm expects this expansion to significantly impact the company’s production capabilities and financial performance.

The research firm also indicated that an eventual recovery in metallurgical coal prices would provide additional upside for the company beyond the operational improvements from the Blue Creek expansion.

In other recent news, Warrior Met Coal announced its second-quarter 2025 earnings, showcasing a notable earnings per share (EPS) of $0.11, which significantly exceeded the expected $-0.26. The company also reported revenue of $297.52 million, slightly above the forecasted $288.82 million. This earnings performance was highlighted by an EBITDA of $54 million, which surpassed both BMO Capital’s and consensus estimates of approximately $29 million each. BMO Capital attributed this earnings beat primarily to lower costs and subsequently raised its price target for Warrior Met Coal from $50 to $55, while maintaining a Market Perform rating. These developments indicate a strong financial performance for Warrior Met Coal in the recent quarter.

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