In a report released today, Nathan Martin from Benchmark Co. maintained a Buy rating on Suncoke Energy (SXC – Research Report), with a price target of $13.00.
Nathan Martin has given his Buy rating due to a combination of factors that highlight Suncoke Energy’s resilience and potential for growth. The company reported a first-quarter adjusted EBITDA that slightly surpassed consensus expectations, demonstrating its ability to perform well even in challenging market conditions. Management’s reaffirmation of full-year guidance, despite the tough spot coke pricing environment, underscores confidence in Suncoke’s operational stability.
Additionally, the extension of the Granite City contract and the potential for increased logistics throughput from the KRT expansion project are positive indicators for future performance. While there are some concerns about reduced economics from the Granite City contract and more spot exposure in the second half, these are partially offset by the company’s strategic priorities and potential growth projects. Furthermore, Suncoke’s prudent capital expenditure management, with likely lower spending due to market uncertainties, reflects a cautious yet optimistic approach to navigating the current economic landscape.
Martin covers the Basic Materials sector, focusing on stocks such as Teck Resources, Suncoke Energy, and Alpha Metallurgical Resources. According to TipRanks, Martin has an average return of 16.7% and a 53.51% success rate on recommended stocks.