B. Riley has revised its outlook on Core Natural Resources (CNR, Financial), reducing the firm's price target from $136 to $119 while maintaining a Buy rating for the stock. This adjustment comes as the firm lowers its estimates for metallurgical coal producers ahead of the first-quarter results. On average, these estimates have decreased by 29%.
Investors are expected to pay close attention to margin outcomes as Q1 earnings are released, given the current market environment. The potential for production cuts later this year may arise if market conditions remain unchanged or deteriorate further.
Additionally, while U.S. metallurgical coal exports to China have begun the process of rerouting, concerns linger over the potential implementation of broad tariff regimes that could impact global economic growth and demand for metallurgical coal, according to the analyst.
