UPDATE: JP Morgan Upgrades Chesapeake Energy to Overweight on Improved Near-Term Financials

JP Morgan upgraded Chesapeake Energy Corporation

from Underweight to Overweight and raised the price target from $15.50 to $20.00. JP Morgan said, "We are upgrading CHK to Overweight from Underweight based on improved financials. We think CHK has reduced spending and costs successfully, but part of the improved financials could be asset sales beyond what the company has disclosed publicly. We recognize that financial risk remains and that the stock is not cheap, but we think an improved financial picture will likely help the stock outperform. We also are rolling out a new, lower commodity price deck with this note." Chesapeake Energy closed at $16.88 on Wednesday.