FBR Capital Reaffirms Their Hold Rating on Warrior Met Coal Llc

In a report released today, Lucas Pipes from FBR Capital reiterated a Hold rating on Warrior Met Coal Llc (NYSE: HCC), with a price target of $22. The company’s shares opened today at $17.90.

Pipes wrote:

“On May 18, 2017, HCC reported 1Q results with an adj. EBITDA of $135M compared with the consensus estimate of $133M. Price realizations of ~82% of the benchmark were above our estimate of 77%, and cost performance was also stronger than anticipated ($93.75/t actual versus our $96.66/t estimate). Sales volumes were lower than we anticipated, although we believe that this was anticipated by the market. Full-year cost guidance is in line with our estimates, but sales guidance is at the midpoint almost 700,000 tons below our prior estimates, partially driven by inventory replenishment. We would note that Other Revenues and Costs in 1Q were better than anticipated, offsetting some of the sales-related reduction to our full- year 2017 estimates. The company anticipates stronger Mine No. 4 realizations as production has moved to lower vol areas of the seam. We maintain our estimate of a 95% and higher benchmark realization under stable market conditions.”

According to TipRanks.com, Pipes is a 4-star analyst with an average return of 5.0% and a 52.8% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Newmont Mining Corporation, Stillwater Mining Company, and Westmoreland Coal Company.

Currently, the analyst consensus on Warrior Met Coal Llc is Moderate Buy and the average price target is $23.33, representing a 30.3% upside.

In a report issued on May 8, Citigroup also initiated coverage with a Hold rating on the stock with a $20 price target.

The company has a one year high of $19.08 and a one year low of $16.67. Currently, Warrior Met Coal Llc has an average volume of 1.03M.

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Warrior Met Coal, Inc engages in the production and export of metallurgical coal. The firm It extracts methane gas from the Blue Creek coal seam. It operates through the Mining and All Other segments. The company was founded on September 3, 2015 and is headquartered in Brookwood, AL.

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