UPDATE: Stifel Nicolaus Downgrades Chesapeake Energy to Hold on Valuation

Stifel Nicolaus reduced its rating on Chesapeake Energy

from Buy to Hold and removed its previous $22 price target. Stifel Nicolaus said, "We are downgrading CHK from a Buy to a Hold on (1) relative valuation, (2) a view that remaining asset sales will have less of a positive impact on the shares, and (3) that the focus will switch from distressed valuations (P/NAV discount) back towards going concern valuations (EV/EBITDAX) which will make it difficult for CHK shares to move up meaningfully higher from here absent a meaningful gas recovery, which can be better captured with other Buy rated gas focused names." Chesapeake Energy closed at $19.09 on Tuesday.