The 204 is definately not going to do much pelt damage to coyote sized game. From the fox and nutria I have shot with my 204 so far, there has been very little pelt damage unless they were gut shot. I've been shooting hornady v-max in 32 grain and the bullet basically hits and fragments upon entering the animal. Usually all you have is an extremly small entrance hole and thats it. From my experience with the 204 thus far I would be extremely comfortable shooting it at coyotes allthough i might shoot a heavier bullet like the 40 graion v max or shoot some of the rouns loaded with the xtp bullets. The 204 makes an excelent varmint /predator gun and it is laser flat out past 300 yards. When I shoot my 204 all i can say is "SWEET!"