UPDATE: Stifel Nicolaus Upgrades Chesapeake Energy Corporation to Buy

Stifel Nicolaus raises its rating on Chesapeake Energy Corporation

to Buy from Hold as current price appears attractive as an entry point. Stifel Nicolaus establishes a $29 target price on shares. Stifel Nicolaus says, "Current stock level provides an attractive entry point. Since the recent July 2011 high for the space, CHK is down 30% while the EPX is down 16% due to natural gas price weakness and the resulting impact of funding issues. Concern is for those with a 3-9 month view. The low gas price causes two issues, the cash flow drops meaningfully resulting in the company's 2012 EV/EIBTDA valuation not necessarily looking attractive. Secondly, the funding gap widens creating additional concerns at the same time the EBITDA valuation is no longer looking attractive for those with a 3-9 month outlook." CHK closed at $23.77 a share on Thursday.