UPDATE: Goldman Sachs Assigns Chesapeake Energy Neutral Rating on Multiple Positive Factors
In a report published Friday, Goldman Sachs analyst Brian Singer changed the rating on Chesapeake Energy (NYSE: CHK) from Not Rated to Neutral, and named a $26.00 price target.
In the report, Goldman Sachs noted, “We remove the Not Rated designation for Chesapeake and now assign a Neutral rating, with 16% projected upside to a $26 12-mo. DCF-/multiples-based target price. Favorable core positions in Eagle Ford/Marcellus/Utica shales are offset in our view by a funding gap that limits the pace of development. CHK may need to see larger scale sales/separation of core acreage in these areas to receive ‘market value/acre' for key positions.”
Chesapeake Energy closed on Thursday at $22.53.
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