UPDATE: Piper Sandler Upgrades CONSOL Energy (CNX) to Overweight
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Piper Sandler analyst Kashy Harrison upgraded CONSOL Energy (NYSE: CNX) from Neutral to Overweight with a price target of $13.00.
The analyst commented, "We recently initiated on CNX with a Neutral rating as we believed valuation was full(note) partially due to a complex financial structure associated with a publicly traded midstream subsidiary. Recently, CNX announced its intent to consolidate the subsidiary. Post-consolidation, CNX possesses a simpler corporate structure and more attractive financial metrics as it generates a 15/11% '21E levered/unlevered FCF yield (peers:14/10%) while trading inline with peers on multiples despite lower leverage. The FCFwill be utilized to reduce debt by >$1.0B over the next two/three years. Perhaps most importantly, CNX is beginning to battle for the lowest cost operator role as its price requiredto hold production flat within CF almost converges with COG during 2021. We believe CNX's improved cost profile and FCF outlook has the potential to resonate favorable with investors; accordingly, we upgrade CNX to OW and raise our PT/NAV to $13/sh (implies:5.1x EV/Unhedged-EBITDA)."
Shares of CONSOL Energy closed at $10.92 yesterday.
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