GrafTech (EAF) PT Raised to $2.20 at Citi

Citi analyst Alexander Hacking raised the price target on GrafTech (NYSE: EAF) to $2.20 (from $1.00) while maintaining a Neutral rating.

The analyst comments "We update our EAF estimates following 3Q24 results. We model 2025 EBITDA close to breakeven, inline with the company 8K filed today with estimate of -$28m to +$31m – see Fig 1. Volume and costs should be better – but average realized price likely lower given the loss of legacy high-priced contracts. The company sounded cautiously optimistic that spot prices will be sequentially higher in 1H25 following Resonac’s 20% hike in September but impact will be mixed and regional. Restructuring debt gives the company a much longer liquidity runway & we remove our 50% liquidity discount and raise TP to $2.20/sh. We remain Neutral/High Risk still seeing the electrode market at trough and set to recover but with limited visibility and challenges still remaining."

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