Zacks Investment Research downgraded shares of CONSOL Energy Inc. (CNX) from NEUTRAL to UNDERPERFORM on July 09, 2013, with a target price of $25.00.
We have downgraded CONSOL Energy to Underperform as the performance of this company was lower than our expectation. Dependence on a limited group of customers for bulk sales could impact future revenues. Coal sales are yet to touch the expected levels and the lower sales price per ton of coal will offset much of the positive impact from cost savings. Moreover, the Blacksville No. 2 Mine incident has proved that CONSOL Energy will have to put more emphasis on the safety of its underground mines, which would increase the cost of operations. CONSOL Energy plans to monetize some of its assets during 2013 and reinvest the proceeds in other lucrative projects. However, we prefer to remain bearish until we see a positive movement in coal demand.
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