Electric power producer Consol Energy ( CNX ) on Monday saw its "Outperform" rating reaffirmed by analysts at FBR Capital, following a recent tour of the company's Baltimore marine terminal.
The firm also backed its $59 price target on CNX, which implies a healthy 18% upside to the stock's Friday closing price of $49.81.
An FBR analyst commented, "We toured the CONSOL Energy's marine terminal at Baltimore port and also spent time with executives and port operating management to provide a marketing and export overview. The key takeaway from the tour is that the port is extremely strategic to CONSOL Energy and maximizes its met coal production as well as provides the ammunition to drive steam coal realizations higher in a $4/Mcf to $6/Mcf natural gas world. We expect export volumes to increase from about 6.8 MTs in 2010 to 8 MTs to 10 MTs in 2011, driven from rising steam and crossover met tons. We also got a birds-eye and detailed view of the necessary expansion tasks to increase CONSOL's Baltimore port capacity from about 14 MTs to over 16 MTs, expanding its export capacity from 22 MTs to 24 MTs in 2012."
Consol Energy shares rose 19 cents, or +0.4%, in premarket trading Monday.
The Bottom Line
Shares of Consol Energy ( CNX ) have a .80% dividend yield, based on Friday's closing stock price of $49.81. The stock has technical support in the $45 price area. If the shares can firm up, we see overhead resistance around the $54-$55 price levels.
Consol Energy ( CNX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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