Warrior Met Coal stock price target raised to $55 from $50 at BMO Capital

Published 07/08/2025, 13:34
Warrior Met Coal stock price target raised to $55 from $50 at BMO Capital

Investing.com - BMO Capital raised its price target on Warrior Met Coal (NYSE:HCC) to $55.00 from $50.00 on Thursday, while maintaining a Market Perform rating on the stock. The coal producer, currently valued at $2.88 billion, has demonstrated strong financial health according to InvestingPro data, with a robust current ratio of 4.59 and more cash than debt on its balance sheet.

The price target increase follows Warrior Met Coal’s second-quarter 2025 EBITDA of $54 million, which significantly exceeded both BMO Capital’s and consensus estimates of approximately $29 million each. BMO attributed the earnings beat primarily to lower costs. InvestingPro analysis indicates the company’s trailing twelve-month EBITDA stands at $197.46 million, though analysts expect profitability challenges ahead. Discover 10+ additional exclusive insights with InvestingPro’s comprehensive research report.

Warrior Met Coal has increased its 2025 sales and production targets, which BMO Capital described as a surprise development. The company also reduced its cost guidance, which the firm noted was a positive change though somewhat anticipated.

BMO Capital highlighted that Warrior’s Blue Creek project is currently ahead of schedule and on budget, characterizing the quarter overall as "well-executed" despite challenging market conditions.

The firm adjusted its estimates to account for higher expected volumes, slightly offset by lower assumed price realizations and 45X credit, with the new $55 price target representing 5.2 times the company’s estimated 2026 EBITDA.

In other recent news, Warrior Met Coal Inc . reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.11, significantly exceeding the projected loss of $0.26 per share. The company also reported revenue of $297.52 million, which was slightly above the anticipated $288.82 million. These results highlight a positive financial performance for the period. The earnings announcement was followed by a rise in Warrior Met Coal’s stock in after-hours trading. Analysts had not forecasted such a strong performance, which may have contributed to the positive market reaction. While the company’s stock price movement is not discussed here, the earnings and revenue figures are crucial for investors. These developments offer important insights for stakeholders evaluating Warrior Met Coal’s recent performance.

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