BMO Capital Markets reported on Monday that it has upgraded coal and natural gas producer, CONSOL Energy Inc. (CNX).
The firm has raised its rating on CNX from “Market Preform” to “Outperform,” and has increased the company’s price target from $35 to $42. This price target suggests a 22.5% upside to the stock’s current price of $32.55.
An analyst from the firm commented, “CONSOL Energy is one of the only stocks in BMO Research’s coal coverage universe not expected to break covenants at any assumed commodity pricing scenario. CNX’s valuation appears attractive relative to peers and its historical norm. CONSOL is exposed to U.S. thermal coal, but as a low-cost producer CNX’s production cuts are expected to be minimal. Further transactions in the natural gas business such as JVs or MLP’s could also increase free cash flow.”
CONSOL Energy shares were up 43 cents, or 1.34% during premarket trading Monday. The stock has declined -3.75% in the past year.
The Bottom Line
Shares of CONSOL Energy Inc. (CNX) have a 1.56% yield, based on Friday’s closing price of $32.12.
CONSOL Energy Inc. (CNX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.