UBS Maintains a 'Buy' on CONSOL Energy (CNX); Cutting Estimates as Blacksville No. 2 Mine Idled
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Price: $35.72 +0.96%
Rating Summary:
9 Buy, 17 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
Rating Summary:
9 Buy, 17 Hold, 7 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
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UBS maintains a 'Buy' on CONSOL Energy (NYSE: CNX) price target lowered $1 to $58.
UBS analyst, says, "CNX announced the idle of the Blacksville No. 2 longwall unit and reduction in continuous mining operations. The move was prompted by the mild winter and low natgas prices. In ‘11 the mine produced roughly 4.2mm tons of thermal coal and 0.1mm tons of met coal. CNX expects a reduction of 400k tons per month, which implies a run rate of over 4.8mm tons per year and a cut of roughly 4mm tons for the remainder of ‘12. Timing is uncertain; however, we expect some of the contracts to roll to ‘13 where CNX may be able to recapture contract value."
"As result of the volume reduction and flow-through impact, we are lowering our 2012/2013 EPS estimates to $1.87$2.29 from $2.16/$2.38. We maintain 2014 estsimates."
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 $35.82 yesterday.
UBS analyst, says, "CNX announced the idle of the Blacksville No. 2 longwall unit and reduction in continuous mining operations. The move was prompted by the mild winter and low natgas prices. In ‘11 the mine produced roughly 4.2mm tons of thermal coal and 0.1mm tons of met coal. CNX expects a reduction of 400k tons per month, which implies a run rate of over 4.8mm tons per year and a cut of roughly 4mm tons for the remainder of ‘12. Timing is uncertain; however, we expect some of the contracts to roll to ‘13 where CNX may be able to recapture contract value."
"As result of the volume reduction and flow-through impact, we are lowering our 2012/2013 EPS estimates to $1.87$2.29 from $2.16/$2.38. We maintain 2014 estsimates."
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 $35.82 yesterday.
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