B.Riley FBR Thinks Hallador Energy Company’s Stock is Going to Recover

By Carrie Williams

B.Riley FBR analyst Lucas Pipes maintained a Buy rating on Hallador Energy Company (NASDAQ: HNRG) today and set a price target of $10. The company’s shares closed yesterday at $5.06, close to its 52-week low of $4.79.

Pipes commented:

“We are maintaining our Buy rating on Hallador Energy with a $10 price target (from $11) following the company’s release of 3Q results on November 7. Hallador’s adjusted EBITDA of $16.9M was in line with our $17.1M estimate. Sales volumes were strong in Q3, having sold 1.79Mt compared to 1.55Mt in Q2. Though price realizations decreased 6% YoY , HNRG remains confident that the elevated API2 pricing could lift ILB realizations. The company paid down $14.8M of debt in Q3, accumulating to a full-year reduction of $27.9M. Hallador announced the construction of a truck-to-rail loading facility at Sunrise coal, which will open the facility to new customers which we view as a major positive. Cost performance was weaker compared to next 18 months, Hallador is looking forward to declining utility stockpiles to drive spot sales in In the.”

According to TipRanks.com, Pipes is a 3-star analyst with an average return of 3.1% and a 50.0% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Newmont Mining Corporation, and Stillwater Mining Company.

Hallador Energy Company has an analyst consensus of Moderate Buy, with a price target consensus of $10.

Based on Hallador Energy Company’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $73.9 million and quarterly net profit of $3.76 million. In comparison, last year the company earned revenue of $65.36 million and had a net profit of $4.21 million.

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Hallador Energy Co. through its subsidiaries engages in the mining, production, and sale of steam coal for the electric power generation industry. The company holds interest in the following properties: the Carlisle underground coal mine; Ace in the Hole mine; Oaktown 1 and Oaktown 2 mines; and Bulldog underground mines.