UPDATE: Stifel Nicolaus Upgrades Chesapeake Energy to Buy on CEO Retirement Announcement
Stifel Nicolaus upgraded Chesapeake Energy (NYSE: CHK) from Hold to Buy and announced a $25.00 price target.
Stifel Nicolaus commented, "We would buy CHK shares on the expectation that the announcement of the CEO stepping down could lead to the whole company being put into play or at least, and more likely, a more aggressive shrinking of the asset base, relative to prior expectations. Either event, corporate sale or more aggressive asset sales, should lead to a faster closing of CHK's NAV discount to its peers. Additionally, we believe that a certain segment of the investment community, who were disinclined to invest in the company due to corporate governance concerns might now take a second look at the company, creating a slightly improved potential investor base."
Chesapeake Energy closed at $18.97 on Tuesday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: Stifel Nicolaus