Goldman Has Buy On Consol Energy (CNX)

Goldman Sachs has a Buy rating and a $44 price target on shares of Consol Energy Inc. CNX, as it has underperformed its group. In a note to clients, Goldman writes, "Despite the challenges, we remain Buy-rated ,as we like CNX's high-margin businesses and see shares as undervalued on a SOTP basis with risk/reward positive. Assuming historic average multiples, we believe shares are discounting HH gas prices per MMBtu of $4.00 for 2011 and $4.50 in 2012 with little credit for asset sales and West VA Marcellus resource upside potential. We believe natural gas prices are at the lower end of a $3.50-$5.00 NT trading range, likely limiting further downside to Buy-side estimates and sentiment. Street expectations for 2011-2012 coal volumes have been reset lower. We see $2-$3/share of upside from the sale of met coal assets and $2-$7/share if WV drilling results are positive." Shares of CNX lost $1.66 on Friday to close at $36.76, a loss of 4.3%.