Wall Street ratings for Consol Energy
As of April 18, 2016, about 40% of Wall Street analysts have rated Consol Energy (CNX) as a “buy,” and ~55% have rated it as a “hold.” Around 5% have rated the stock a “sell.” The median price target from these recommendations is $13.66, which is ~7% higher than the stock’s closing price of $12.92 on April 18, 2016.
Based on median price targets of recommendations from Wall Street analysts, Marathon Oil (MRO), Occidental Petroleum (OXY), and Energen Corporation (EGN) have potential upsides of ~21%, ~7%, and ~5%, respectively, based on their April 18, 2016, closing prices. Notably, the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.
CNX’s individual recommendations
As shown in above table, the most recent recommendation of “buy” comes from Clarkson Platou Securities, which issued its recommendation on April 11, 2016. Clarkson Platou Securities assigned Consol Energy the target price of $17, which is ~32% higher than the company’s closing price of $12.92 on April 18. Clarkson Platou Securities is expecting CNX to reach this target price within next twelve months.
Morgan Stanley has assigned Consol Energy the highest target price of $29, which is ~124% higher than the company’s closing price of $12.92 on April 18. Morgan Stanley issued its Consol Energy recommendation in the last week of February 2016 and expects the stock to reach the target price in next twelve months.
Some of the concerns for CNX’s stock noted by Wall Street analysts are the absence of demand catalysts for its Coal segment, falling EBITDA due to lower coal and natural gas realizations, and a stressed balance sheet.
In the next and final part, we’ll look at Consol’s stock performance.