UPDATE: Wunderlich Securities Initiates Chesapeake Energy Corporation with Buy and $22 PT on Asset Value

Wunderlich Securities initiates its coverage on Chesapeake Energy Corporation

with a Buy and a price target of $22. Wunderlich Securities notes, "he company has been in the news lately and painted in a rather negative light, causing the share price to fall considerably during 2012 to near its 52-week lows. However, we believe the value of Chesapeake's assets at this time are simply too great to ignore given that CHK trades just above our estimate of Chesapeake's calculated proven reserve value. We expect Chesapeake to be able to fund its cash flow deficits using asset monetizations in 2012 and 2013 as it ramps up the liquids production. As investors become more confident in the growth story and focus again on the significant asset base, we look for the shares to appreciate." CHK closed at $18.21 on Wednesday.