- Goldman Sachs starts Consol Energy (CNX +0.5%) with a Neutral rating even as it praises the coal company's fundamentals.
- Thanks to the production ramp in the Marcellus/Utica and recent asset sales, the firm thinks CNX's E&P business should grow from just 31% of the EBITDA mix in 2013 to 54% by 2015, and remaining coal assets should drive strong free cash flow, helping to fund the E&P capex ramp.
- But after rallying 10% in the last month vs. the S&P +2% and KOL -2%, Goldman sees more upside in Peabody Energy (BTU +0.3%) and SunCoke (SXC +0.3%); also, with coal asset sales complete, the firm sees no major catalysts to drive the stock higher in the near term.
Consol Energy viewed Neutral at Goldman Sachs; prefers Peabody, SunCoke
Dec 23 2013, 11:21 ET