Mizuho Securities analyst Nitin Kumar CFA has maintained their neutral stance on CNX stock, giving a Hold rating today.
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Nitin Kumar CFA has given his Hold rating due to a combination of factors influencing CNX Resources’ current and future performance. The company is maintaining a disciplined capital approach, focusing on sustaining production levels and maximizing free cash flow, even as gas prices improve. This cautious strategy is aimed at ensuring long-term value creation, which aligns with the management’s focus on capital discipline.
Additionally, CNX’s new ventures, such as the Remediated Mine Gas under the 45Z Clean Fuel Production Tax Credit framework, present potential future revenue streams. However, the company is currently trading at a valuation slightly below its peers, which justifies the Hold rating. The anticipated increase in free cash flow and the extension of the tax-free period also contribute to the decision to maintain a neutral stance, while the price target is slightly raised to reflect these positive developments.
According to TipRanks, Kumar CFA is a 4-star analyst with an average return of 3.7% and a 58.33% success rate. Kumar CFA covers the Energy sector, focusing on stocks such as CVR Energy, Delek US Holdings, and CNX Resources.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a $36.00 price target.