KBW Maintains Bullish Outlook on NACCO Industries After Management Discussions

On May 30, Keefe, Bruyette & Woods reiterated their Outperform rating and $2,300 price target for NACCO Industries, Inc. (NYSE:NC) shares, indicating their continued optimism. The support comes after recent talks with the company’s C-suite, which focused on the management team’s long-term plans.

Analysts at Keefe, Bruyette & Woods stated that NACCO Industries, Inc. (NYSE:NC) is especially vulnerable to changes in interest rates. On one hand, lower interest rates may put pressure on net interest income and net interest margin, on the other, they may also spur expansion at the company’s Silicon Valley Bank legacy division.

The company’s share buyback program was also brought up by the firm, which predicted a 20% decrease in the number of shares between the first quarter of 2025 and the fourth quarter of 2026. The company’s ROTCE, which is predicted to rise from 10% in Q1 2025 to 12% by the end of 2026, is anticipated to benefit from this drop.

While we acknowledge the potential of NC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NC and that has 100x upside potential, check out our report about the cheapest AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.