SunCoke Energy (SXC) Stock Forecast & Price Target

SunCoke Energy Inc. has demonstrated strong financial performance, with an increase in liquidity from $432 million in the second quarter to $515 million. The company's logistics segment has consistently outperformed expectations, positively influencing consolidated adjusted earnings and enhancing its overall financial outlook. Furthermore, substantial gains in the Domestic coke segment, characterized by exceeding EBITDA/ton guidance and achieving higher spot coke sales without maintenance interruptions, have led to an upward revision of the EBITDA estimate from $250 million to $256 million.

SunCoke Energy Inc. is facing a challenging outlook as its EBITDA per ton is projected to decrease, primarily due to the impact of planned maintenance in the second half of the year, with expectations set at $58-$60 for the full year. The company's latest financial report indicated a quarterly decline in adjusted EBITDA, missing estimates by $3 million and witnessing lower coke sales by 13,000 tons, which contributed to a reduction in liquidity by approximately $20 million. Furthermore, the static gross leverage of 1.86x, despite declining coal-to-coke yields, raises concerns about financial flexibility and the company's ability to manage its debts effectively.