UPDATE: Jefferies Lowering Price Target on Chesapeake Energy

Jefferies & Co. is out with a research report on Chesapeake Energy

and it is lowering its price target to $40 from $43, but it has a Buy rating on shares. In a note to clients, Jefferies & Co. writes, "CHK has an industry-leading portfolio of assets. Early indications are that the Utica, where CHK is the dominant player, will have great economics driven by high condensate yields. But, the daunting 2012 funding gap has taken center stage, and the company's bridging strategy is fraught with execution and market risks. CHK's asset value may not be realized until clarity emerges on how the substantial funding gap will be bridged." Shares of CHK lost $1.96 on Friday to close at $27.07.