On Thursday, SunCoke Energy (NYSE:SXC) received a boost from Benchmark as the firm increased the company's stock price target to $13.00, up from the previous $12.00, while retaining a Buy rating on the stock. This adjustment comes after SunCoke reported a solid second-quarter adjusted EBITDA of $64 million, surpassing the consensus estimate of $62 million.
The company's logistic operations have seen significant success, attributed to new business and positive effects from the Baltimore port outage, with SunCoke's domestic terminals managing the highest tonnage in five years for the first half of the year.
Although a slight downturn is anticipated for the second half, management is confident that the logistics segment will surpass the full-year adjusted EBITDA and volume expectations.
This upbeat performance in logistics is projected to contribute to SunCoke achieving the upper end of its previously issued full-year adjusted EBITDA guidance. The board of SunCoke has also recognized the company's stable core business performance by approving a 20% hike in the quarterly dividend to $0.12 per share.
SunCoke has confirmed that detailed engineering for the proposed Granite City GPI project is ongoing. The successful sanctioning of this project would not only prolong the long-term coke contract but also enable SunCoke to penetrate the Electric Arc Furnace (EAF) market.
In other recent news, SunCoke Energy has delivered a series of noteworthy updates. The company reported a robust Q1 2024 performance, recording a consolidated adjusted EBITDA of $67.9 million. SunCoke Energy's domestic coke plants operated at full capacity, and its logistics terminals handled 5.5 million tons. The company also maintained a strong liquidity position of $470.1 million.
SunCoke Energy's Board of Directors approved a 20% increase in the quarterly dividend from $0.10 to $0.12 per share. This change reflects an adjustment in the company's dividend policy, aimed at delivering greater returns to its investors. The increased dividend is scheduled to be paid to shareholders on record as of August 15, 2024.
In addition to these financial highlights, SunCoke Energy confirmed the ongoing detailed engineering for the proposed Granite City GPI project. The successful sanctioning of this project would extend the long-term coke contract and enable SunCoke to penetrate the Electric Arc Furnace (EAF) market.
Lastly, Benchmark has increased SunCoke Energy's price target to $13.00, up from the previous $12.00, while maintaining a Buy rating on the stock. These are among the recent developments concerning SunCoke Energy.
InvestingPro Insights
Following the positive outlook from Benchmark, real-time data from InvestingPro further enriches the narrative for SunCoke Energy (NYSE:SXC). With a market capitalization of $983.88 million and a Price/Earnings (P/E) ratio of 14.81, the company presents an interesting profile for investors. Notably, the P/E ratio has slightly increased to 15.79 on a last twelve months basis as of Q2 2024, indicating a modest rise in valuation compared to historical earnings.
InvestingPro Tips highlight that SunCoke has been trading near its 52-week high, with the price reaching 98.73% of this peak. This aligns with the company's strong return over the last month of 16.53% and over the last three months of 19.94%, showcasing recent upward momentum in the stock price. Moreover, SunCoke's liquid assets exceed its short-term obligations, suggesting a sound liquidity position that may reassure investors of the company's financial health.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips, including insights into SunCoke's profitability and long-term performance. There are 9 total InvestingPro Tips available for SunCoke Energy, which can be accessed for further detailed investment considerations.
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