UPDATE: Citigroup Reiterates Buy Rating, Raises PT on CONSOL Energy on 3Q Preview, Lowered Estimates

In a report published Thursday, Citigroup analyst Brian Yu reiterated a Buy rating on CONSOL Energy CNX, and raised the price target from $36.00 to $43.00. In the report, Citigroup noted, “After updating our model for 3Q average prices, EIA shipment data and 4Q benchmark met prices, we estimate 3Q operating EPS of $0.02 vs. consensus of $0.07 on revenues of $1,239 mln and EBITDA of $222 mln. To reflect the 4Q13 benchmark metallurgical coal settlement and our lower natural gas price forecasts, we are lowering our EPS estimate for 2013 to $0.29 from $0.45, 2014 to $1.25 from $1.50 and 2015 to $1.70 from $1.80. Despite our lower EPS estimates for CONSOL, we maintain our Buy (1) rating and raise our price target to $43 from $36 due to the potential for assets sales/corporate structure changes to accelerate cash flows and unlock value not currently reflected in the shares.” CONSOL Energy closed on Wednesday at $37.75.