In a report issued on February 22, Lucas Pipes from B.Riley FBR maintained a Hold rating on Warrior Met Coal Llc (HCC), with a price target of $31. The company’s shares opened today at $29.
Pipes wrote:
“Coal (Neutral, $31 PT) released 4Q18 earnings results of $161.6M in adjusted EBITDA, higher than consensus and our estimate of $149.2M and $146.4M, respectively. Compared to our estimates, the company beat on higher sales of 1.79M Mt (we modeled 1.71M Mt) and lower cash costs of $102.12/Mt (our estimate was 111.06/Mt). In addition to reporting 4Q18 results, Warrior also provided updated FY19 guidance. The company expects to produce and sell volumes of 7.1M to 7.6M tons which was in line with our previous estimate of 7.37M tons. In addition, Warrior anticipates cash cost of sales of $89-$95/ton which was lower than we expected. We previously modeled $98.26/ton in 2019. Overall, we believe that it was a solid quarter for Warrior between the beat, cost outlook for 2019, and management’s indication that it intends to return more capital to shareholders.”
According to TipRanks.com, Pipes is a 3-star analyst with an average return of 1.3% and a 48.8% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, CONSOL Coal Resources LP, and Teck Resources Limited.
Currently, the analyst consensus on Warrior Met Coal Llc is a Hold with an average price target of $31.
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Warrior Met Coal Llc’s market cap is currently $1.54B and has a P/E ratio of 3.69. The company has a Price to Book ratio of 4.21.
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Warrior Met Coal, Inc engages in the production and export of metallurgical coal. The firm extracts methane gas from the Blue Creek coal seam. The company was founded on September 3, 2015 and is headquartered in Brookwood, AL.
