Davenport announced on Wednesday that they have upgraded energy company, CONSOL Energy Inc.(CNX) to a “Buy”.

The firm reported that they have increased their rating for CNX from “Neutral” to a “Buy,” and has raised its price target from $33 to $40. This price target suggests a 15% increase from the stock’s current price of $33.83.

An analyst from the firm commented, “the upgrade is based on our view that CNX’s valuation multiple will peak in 2013, driven by a recovery in met coal prices and increased focus on the value of the company’s E&P assets. We expect a rebound in met prices will drive improved investor sentiment towards CNX. This should propel its multiple to peak levels as investors anticipate higher met prices driving earnings growth in 2014. Additionally, we expect investors to increasingly focus on the value of company’s E&P assets as sentiment towards nat. gas improves.”

CONSOL Energy shares were mostly flat during premarket trading Wednesday. The stock is down -7.8% YTD.

The Bottom Line
Shares of Consol Energy (CNX) have a 1.48% dividend yield, based on last night’s closing stock price of $33.48. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $36-$37 price levels.

CONSOL Energy Inc.(CNX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.