UPDATE: Citigroup Lowers PT on CONSOL Energy to $40

Citigroup has published a research report on CONSOL Energy

and has lowered the price target from $45 to $40 after the company's announcement today regarding lower international metallurgical coal demand. In the report, Citigroup writes, "CNX announced today that in response to lower international metallurgical coal demand, they plan to idle longwall operations at Buchanan and curtail continuous mining operations to five days, which should lower production by 295k tons per month. Buchanan is a highly competitive low-vol met coal mine and produced 5.7 mln tons in 2011. The duration of these curtailments will depend on market conditions. After updating our model for production cut-backs at both Buchanan (estimate 3.5 mln tons in 2012) and the recently announced Blacksville, we are lowering our 1Q12 EPS estimate to $0.47 from $0.65, full year '12 estimate to $1.67 from $2.57 and reducing our 12-month target price to $40 from $45." Citigroup maintains its Buy rating on CONSOL Energy, which is currently trading down $0.76 from yesterday's $33.35 closing price.