Tough 3Q For CONSOL Energy

Dahlman Rose has published a research report on CONSOL Energy

after the company reported a tough 3Q and is expecting lower coal volumes in the coming quarters. In the report, Dahlman Rose writes "While we have reduced our earnings estimates due to the lower thermal coal sales outlook and a further weakening of natural gas pricing,we believe CNX shares already reflect these factors to a large degree and are reiterating our Buy rating. As the highest-margin producer in Appalachia, CONSOL remains one of the least vulnerable names to regulatory cost pressures while its growing gas production leaves significant upside in a recovering gas price environment. Management now expects to announce a non-core met coal asset sale on or before 4Q10 earnings, providing a potential catalyst to the shares. We have adjusted our price target to $44 from $51 due to our decreased coal production estimates and a lowering of our gas segment NAV calculation." Dahlman Rose maintains its Buy rating and $44 price target. CONSOL Energy closed yesterday at $36.91.