Updated Aug 9 at 8:56am ET.
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BMO Capital nudged its price target up from $7.00 to $7.50. This is a small adjustment that suggests the firm sees a slightly better path forward for the company after its recent quarterly update. While the target is still below the current stock price, the move shows a bit more confidence in the company's ability to navigate its current challenges. For a business dealing with high debt and a slow recovery in steel demand, even a minor target increase from a major firm is a signal that the situation is stabilizing.
Source: BMO Capital
GrafTech reported a loss of $1.54 per share, which was roughly in line with what analysts expected. The company sold about 31 thousand metric tons of graphite electrodes, the rods used to melt scrap metal in steel furnaces. This was an 8 percent increase from last year, showing that demand for its products is starting to return.
However, the company spent $75 million more cash than it brought in this quarter. This happened partly because of interest payments on its $1.2 billion debt and a decision to build up its inventory. With $253 million in total liquidity, which is the cash and credit it has available to stay running, the company needs its new price increases to stick so it can return to making money before that cushion runs out.
Source: 8-K filing
Analysts recently nudged their price targets higher following the company's latest earnings report. Only 1 of 9 analysts recommends buying the stock, and the average target of $8 is slightly below the current price.
The company has struggled to meet expectations lately, missing its profit targets in three of the last four quarters as it navigates a tough market.
| Expectation | |
|---|---|
| EPS | $-1.44 |
| Revenue | $127M |
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