Nathan Martin, an analyst from Benchmark Co., maintained the Buy rating on Core Natural Resources (CNR – Research Report). The associated price target is $112.00.
Nathan Martin has given his Buy rating due to a combination of factors that highlight the potential for Core Natural Resources (CNR) to deliver strong financial performance post-merger. Despite a recent setback with a combustion event at Leer South, the company is on track to resume development work and expects a decrease in cash costs per ton, which should improve profitability. Additionally, CNR’s management has already achieved a significant portion of its synergy targets, and there is optimism that cost savings could exceed initial projections.
Furthermore, CNR plans to return a substantial portion of its free cash flow to shareholders, including a $1.0 billion share buyback program, which is expected to enhance shareholder value. The company’s robust liquidity position, with significant cash reserves, supports these initiatives. Looking ahead, the anticipated improvement in shipment volumes and cost efficiencies, along with favorable market conditions for its thermal business, underpin the positive outlook for CNR’s financial performance.
In another report released yesterday, B.Riley Financial also maintained a Buy rating on the stock with a $136.00 price target.