Leading financial services firm B. Riley has revised its price target for Core Natural Resources (CNR, Financial), dropping it to $112 from $119 while maintaining a Buy rating on the stock. This adjustment follows the company’s first-quarter earnings report, which showed CNR’s stock trading 9.1% lower than before the earnings release. Despite disruptions caused by idling costs and three longwall moves impacting the first quarter, CNR is expected to perform well over the remainder of the year. The company is poised to generate robust free cash flow and effectively implement its shareholder return program, according to analysts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Core Natural Resources Inc (CNR, Financial) is $139.00 with a high estimate of $142.00 and a low estimate of $135.00. The average target implies an upside of 95.98% from the current price of $70.93. More detailed estimate data can be found on the Core Natural Resources Inc (CNR) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Core Natural Resources Inc's (CNR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Core Natural Resources Inc (CNR, Financial) in one year is $80.19, suggesting a upside of 13.06% from the current price of $70.925. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Core Natural Resources Inc (CNR) Summary page.
CNR Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Core Natural Resources Inc (CNR, Financial) reported a strong start to 2025 with $123.5 million in adjusted EBITDA despite a challenging market environment.
- The company returned $106.6 million to investors through share buybacks and dividends, demonstrating a commitment to shareholder value.
- CNR increased its target for merger-related synergies by 10% to between $125 and $150 million, indicating successful integration efforts.
- The high CV thermal segment generated substantial free cash flow by leveraging strong contracted business and favorable market conditions.
- CNR successfully executed capital market transactions to establish a strong capital structure, enhancing future growth prospects.
Negative Points
- Market conditions were challenging for the metallurgical segment, impacting overall performance.
- The company reported a net loss of $69 million, partly due to atypical items such as merger-related expenses and costs related to the Lear South combustion event.
- CNR faced soft market conditions in the international arena due to trade-related uncertainties and retaliatory tariffs.
- The metallurgical segment's realized price per ton for coking coal was lower than expected, affecting revenue.
- There are concerns about the sustainability of coal demand and the potential impact of future regulatory changes on the industry.
