Ramaco Resources initiated with a Buy at Texas Capital

Texas Capital analyst Matthew Key initiated coverage of Ramaco Resources (METC) with a Buy rating and $42 price target The company’s a metallurgical coal producing assets are low-cost and currently support 3.9M to 4.3M tons of production, but with the ability to expand to over 7.0M tons in the medium term, and in addition to its coal business, Ramaco is developing the Brook Mine in Wyoming, which hosts a compelling resource base of rare earth elements and other critical minerals, the analyst tells investors in a research note. Brook could offer robust economics and a compelling investment case given the importance of growing the domestic supply chain for rare earth elements in the U.S., the firm added.