Benchmark Reiterates Buy Rating on SunCoke Energy (SXC)

Benchmark analyst Nathan P. Martin reiterated a Buy rating and $13.00 price target on SunCoke Energy (NYSE: SXC).

He said, "

SunCoke Energy (SXC) reported 4Q adj. EBITDA of $66M, beating the $63M consensus. Looking ahead, management is guiding to full-year 2025 consolidated adj. EBITDA of $210M-$225M versus $273M in 2024 and our prior estimate of $250M. The decline is largely driven by a lower expected contribution from the domestic coke business. While sales are forecast to be roughly flat, margins will be pressured due to the combination of reduced economics on the previously extended Granite City contract as well as more spot exposure in 2H at Haverhill where the long-term agreement has yet to be renewed. As for the logistics segment, operations are largely anticipated to be similar y/y benefitting from new and extended take-or-pay agreements. Finally, despite management’s clear frustration with delays that are outside the company’s control, SXC continues to believe in the economic value of the potential GPI project. We see the merit as well as the investment would allow SXC to renew the long-term contract at Granite City and diversify its business by entering the EAF segment. With capex originally estimated at around two years of FCF plus some revolver borrowing, we believe SXC will prudently continue to hold back on more material spending or shareholder returns until a decision is made."

For an analyst ratings summary and ratings history on SunCoke Energy click here. For more ratings news on SunCoke Energy click here.

Shares of SunCoke Energy closed at $9.64 yesterday.

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