In a report released yesterday, Katja Jancic from BMO Capital maintained a Hold rating on GrafTech International, with a price target of $15.00.
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Katja Jancic has given her Hold rating due to a combination of factors impacting GrafTech International’s current and future performance. The company has shown positive EBITDA and free cash flow, indicating effective cost and working capital management. However, the overall market for graphite electrodes is currently oversupplied with weak demand, which poses challenges for pricing and revenue growth.
Despite these challenges, GrafTech is focusing on commercial activities and cost management, which could lead to market share gains, particularly in the US. The company’s liquidity position has improved, providing a buffer against the challenging operating environment. Nonetheless, the subdued pricing environment and reduced sales expectations for 2025, due to avoiding low-margin sales, have led to a trimmed EBITDA forecast for FY2026. These mixed factors contribute to the Hold rating, reflecting a cautious but stable outlook.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $21.00 price target.