
HCC Stock Forecast & Price Target
HCC Analyst Ratings
Bulls say
Warrior Met Coal Inc. is positioned for growth, as evidenced by its increased full-year sales guidance of 8.2M-9.0M tons, reflecting a year-over-year increase of 625,000 tons at the midpoint. The company's operations are expected to benefit significantly from the Blue Creek mine, which is projected to enhance annual High Vol A production by 4.8 million tons, contributing to improved revenue generation. Additionally, Warrior's status as a low-cost longwall operator, combined with the ability to achieve realized prices at 85%-90% of the premium low-vol benchmark, underpins a solid financial outlook despite prevailing market challenges.
Bears say
The outlook for Warrior Met Coal's stock is negatively impacted by a significant decline in fourth-quarter free cash flow (FCF), which recorded a negative $88 million and contributed to a decrease in cash and cash equivalents by $84 million. Additionally, the company's adjusted EBITDA for the fourth quarter was $53 million, falling short of both the $74 million consensus and the analyst's estimate of $61 million, primarily due to rising cash costs per ton and weaker-than-expected revenue realizations. The elevated capital expenditures and broader market concerns, coupled with a decrease in sales volumes and lower guidance for future earnings, further exacerbate the sentiment surrounding the company's financial health.
This aggregate rating is based on analysts' research of Warrior Met Coal and is not a guaranteed prediction by Public.com or investment advice.
HCC Analyst Forecast & Price Prediction
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