Carlos De Alba, an analyst from Morgan Stanley, has initiated a new Hold rating on Ramaco Resources (METC).
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Carlos De Alba has given his Hold rating due to a combination of factors surrounding Ramaco Resources. The company is in the process of developing its Brook Mine, which holds potential for rare earth elements and critical minerals, marking a significant shift from its traditional metallurgical coal business. While this project could potentially transform the company by aligning with US efforts to secure domestic supply chains, it remains in the early stages of development.
Ramaco’s existing metallurgical coal operations are well-positioned to benefit from favorable market conditions, including production suspensions in Australia and a positive outlook in India. However, for the Brook Mine project to be successful, Ramaco needs to achieve positive test results from its pilot plant, upgrade its mineral resources, and secure downstream partners for offtake agreements, particularly for scandium. These uncertainties contribute to the Hold rating, as the company’s future growth is contingent on these developments.
According to TipRanks, De Alba is a 5-star analyst with an average return of 13.2% and a 54.47% success rate. De Alba covers the Basic Materials sector, focusing on stocks such as Freeport-McMoRan, Alcoa, and Cleveland-Cliffs.
In another report released on November 21, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $17.00 price target.