UPDATE: Wunderlich Reiterates Buy Rating, Raises PT on Chesapeake Energy Corporation
In a report published Wednesday, Wunderlich Securities reiterated its Buy rating on Chesapeake Energy Corporation (NYSE: CHK), and raised its price target from $22.00 to $24.00.
Wunderlich noted, “Chesapeake Energy Corporation (CHK) missed 2Q12 estimates, reporting $0.06 versus our $0.12 and the Street's $0.08 estimate, as natural gas and NGL pricing weighed on stronger-than-expected production. More importantly, Chesapeake was able to provide further details on its asset divestiture program and production expectations for 2012 and 2013, both of which were ahead of our estimates. These positive moves drive higher cash proceeds and operating cash flow which should allow Chesapeake to reduce its debt by about $5.0 billion by year-end to under $10 billion. We believe as the debt level moves down the company will return to favor with investors given its strong growth and sizeable asset base.”
Chesapeake Energy Corporation closed on Tuesday at $19.37.
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