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Analysts are downwardly revising their ratings today on coal stocks CONSOL Energy Inc. (NYSE:CNX) and Cloud Peak Energy Inc. (NYSE:CLD), plus energy drink peddler Monster Beverage Corp (NASDAQ:MNST). Here's a quick look at today's bearish brokerage notes on CNX, CLD, and MNST.
- CNX offered a poorly received production update yesterday, and shed 2.4% to end the session at $42.51. This morning, Brean cut its price target on the shares to $54 from $57, even as it maintained a "buy" rating on CONSOL Energy Inc. With the coal stock recently breaking down below its 50-day and 80-day moving averages, more negative notes could be in store for CNX. The shares have garnered no less than 81% "buy" endorsements, and they haven't traded above analysts' average 12-month price target of $50.62 since August 2011.
- FBR dropped its price target on CLD to $25 from $26, but kept an "outperform" rating on the equity. The downwardly revised target still implies expected upside of about 49% from Tuesday's close at $16.78. To put that forecast in context, shares of Cloud Peak Energy Inc. have gained less than 3% over the past 52 weeks, and they're down 6.8% year-to-date. Options traders are considerably less upbeat on CLD's prospects, judging by the stock's Schaeffer's put/call open interest ratio (SOIR) of 2.65. Not only does this ratio indicate that puts nearly triple calls among options set to expire within three months, it also arrives in the 99th percentile of its annual range -- which means short-term speculators have shown a greater preference for puts over calls just 1% of the time during the last year.
- MNST was hit with a price-target cut to $75 from $78 at Stifel, with the brokerage firm now espousing a more conservative view than most of its peers. Currently, the average 12-month price target for Monster Beverage Corp is $79.07 -- exactly 10 points, or 14.5%, above Tuesday's close at $69.07. However, Stifel is far from all-out bearish on MNST. The firm backed its "buy" rating, placing it among 90% of the other analysts tracking the shares.