CNX Resources stock rises on analyst upgrade

Published 18/03/2025, 15:40
© Reuters.

Investing.com -- Shares of CNX Resources (NYSE: NYSE:CNX) climbed 4.4% following an upgrade by Stephens analyst Mike Scialla from Equal Weight to Overweight, with a new price target set at $48, up from the previous $35.

Scialla’s optimism for CNX Resources is based on the company achieving 100% of his net asset value (NAV) estimate, which aligns with recent NYMEX strip prices. Despite a slight reduction in cash flow per share (CFPS) estimates for 2025 and 2026 due to projected hedge losses, the analyst’s revised figures are only marginally below and above Street consensus for those years, respectively. The updated oil and gas price forecasts show a mix of slight decreases and significant increases compared to prior projections.

The valuation adjustment also considers the company’s year-end 2024 proved reserve report, which contributed to a 37% raise in Scialla’s NAV estimate to $48. The analyst noted, "The stock is valued at a 2% premium to our peer group based on our EV/2026 EBITDA estimate of 4.9x vs our natural gas peer group average of 4.8x."

Investors have responded positively to the upgrade and revised price target, as the increase in CNX Resources’ stock price suggests confidence in the company’s future performance relative to its peers. The upward movement in share price reflects the market’s agreement with Scialla’s assessment and the anticipation of CNX Resources achieving the outlined NAV.

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