GrafTech International (EAF) could see better pricing, higher volumes and lower costs over time, while possible anti-dumping duties may help improve profitability, though excess supply remains a key risk, RBC Capital Markets said in a note emailed Tuesday.
Anti-dumping duties expected by September could reduce US imports and support a longer-term graphite electrode price of about $4,200 to $4,500 per metric ton or more, RBC said, adding that it expects GrafTech's fiscal 2026 volumes to rise 5% to 10%, supported by new orders in the second half and modest growth in global steel demand.
RBC also expects lower production costs, forecasting fiscal 2026 cash cost of goods sold at $4,399 per metric ton, down from its previous $4,493 estimate, according to the note.
Continued cost cuts and stronger pricing could eventually return GrafTech to profitability and move free cash flow closer to break-even, the investment firm said.
RBC kept the company's $7 price target and sector perform rating.
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