Market Overview

J.P. Morgan Reiterates Underweight Rating, $15.50 PT on Chesapeake Energy Corporation

Share:
Related CHK
Is Chesapeake The 'Shining Gem' In Today's Oil Slick?
Why Oil's Crash Is Nowhere Near Over In 7 Pictures
Stock Market News for January 30, 2015 - Market News (Zacks)

In a report published Wednesday, J.P. Morgan & Co. reiterated its Underweight rating and $15.50 price target on Chesapeake Energy Corporation (NYSE: CHK).

J.P. Morgan noted, “CHK announced that, by YE12, it will sell the majority of its midstream business to Access Midstream Partners for $2.16 Bn. It also expects to sell, during 1Q13, its remaining midstream assets, also to Access, for $425 MM (no purchase and sale agreement yet), making the total sale $2.585 Bn. This transaction, though $100 MM lower than CHK had previously disclosed, enables the company to avoid an immediate liquidity pinch. Chesapeake still has a lot of assets to sell to avoid further liquidity issues during 2013. Valuation wise the stock is not cheap, and the company still has financial risk, so we maintain our Underweight rating.”

Chesapeake Energy Corporation closed on Tuesday at $17.09.

Latest Ratings for CHK

DateFirmActionFromTo
Jan 2015Deutsche BankMaintainsHold
Jan 2015SusquehannaInitiates Coverage onNeutral
Jan 2015Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for CHK
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Reiteration Analyst Ratings

 

Related Articles (CHK)

Around the Web, We're Loving...

Get Benzinga's Newsletters