Consol Powers Coal Stocks Rebound (CNX, YZC, PCX, BTU, ACI, ANR, MEE)
Shares of Consol Energy (CNX), the second-largest U.S. coal company by market value, are rallying by 2% after the Davenport initiated coverage of the stock with a “buy” rating and $59 price target, which implies upside of more than 20% from where the shares currently trade. The Consol upgraded is providing some much-needed relief for the Coal Stocks Index, which is up 0.9% today. The Index has slipped 6% in the past month.
Davenport says that, in its view, global coal demand, particularly in Asia and Europe, is more robust than domestic demand growth and Consol’s export capabilities provide a competitive advantage. The research firm also cited Consol’s attractive valuation as a potential positive for the stock. Shares of Consol have dipped 5% in the past month.
The Index is seeing broad-based strength today as only two stocks are trading lower and just one is flat. With a gain of 4%, Yanzhou Coal Mining (YZC), China’s fourth-largest coal company, is the top performer among large-cap coal names. Patriot Coal (PCX) is also soaring 4%. Peabody Energy (BTU), the largest U.S. coal company, and Arch Coal (ACI) are both up 3% while Alpha Natural Resources (ANR) and Massey Energy Company (MEE) are both higher by 1%.
Investors can track the Coal Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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