UPDATE: Citi Downgrades CONSOL Energy (CNX) to Neutral

(Updated - December 1, 2014 10:06 AM EST)

Citi downgraded CONSOL Energy (NYSE: CNX) from Buy to Neutral with a price target of $41 (unchanged).

Analyst Brian Yu said, "After incorporating our new commodity price forecasts, we are decreasing our EPS estimate for 2014 to $0.93 from $0.98 and for 2015 to $0.67 from $0.77. In addition to our lower earnings estimates, CNX is approaching our unchanged target price of $41/sh, and as a result we are downgrading CNX to Neutral from Buy."

"Based on our new commodity price assumptions we model FCF of -$310 mln in 2014, -$15 mln in 2015 and $54 mln in 2016. The primary driver of our negative near-term FCF estimates is high levels of capex needed to achieve their 30% natural gas volume growth targets for 2015 and 2016. Our estimates also assume an average spot natural gas price of $3.70/mmbtu in 2015 which is below the current 12 month strip of $3.90/mmbtu, implying some upside to our numbers relative to spot," he added.

For an analyst ratings summary and ratings history on CONSOL Energy click here. For more ratings news on CONSOL Energy click here.

Shares of CONSOL Energy closed at $39.13 yesterday.

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