** Brokerage Siebert Williams initiates coverage on natural gas producer CNX Resources CNX.N with "hold" rating

** The new price target of $32 represents a 6.6% upside to the stock's last close of $30.03

** Brokerage says CNX has significant scale across Appalachia, providing decades of shale inventory at current pace

** However, long-term upside is mainly from the deep dry gas formation Utica, it says

** Adds, CNX is the most hedged in their coverage, with its position currently underwater

** "While hedging ensures management executes on its plan, it caps the upside to the bullish natural gas setup going forward" - brokerage

** Despite the strong free cash flow and capital returns, this risk may put CNX on the short side of a pair trade in the constructive natural gas tape - brokerage

** Average rating of 14 brokerages is "hold"; median PT is $32 - data compiled by LSEG

** Up till last close, stock down 18.1% YTD

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))