UPDATE: Davenport Upgrades CONSOL Energy to Buy on Assets. Met Coal Pricing Outlook
Davenport raised its rating on CONSOL Energy (NYSE: CNX) from Neutral to Buy and increased its price target from $33 to $40.
Davenport commented, " The upgrade is based on our view that CNX's valuation multiple will peak in 2013, driven by a recovery in met coal prices and increased focus on the value of the company's E&P assets. We expect a rebound in met prices will drive improved investor sentiment towards CNX. This should propel its multiple to peak levels as investors anticipate higher met prices driving earnings growth in 2014. Additionally, we expect investors to increasingly focus on the value of company's E&P assets as sentiment towards nat. gas improves."
CONSOL Energy closed at $33.27 on Monday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.