JPMorgan reported on Wednesday that they have upgraded natural gas and oil exploration and production company, Chesapeake Energy Corporation(CHK) to an “Overweight.”
The firm has increased their rating on CHK from an “Underweight” to an “Overweight,” and has increased their price target from $15.50 to $20. This price target suggests a 22.5% increase from the stock’s current price of $16.94.
Analysts from the firm noted that better financials resulted in the upgrade. They also believe that it is a possibility that the company may see another asset sale in the near future.
If CHK is able to reduce spending during 2013, the company may be able to avoid another situation where they are scrambling to liquify their assets.
Chesapeake Energy shares were down 10 cents, or -0.59% during premarket trading Thursday. The stock has declined -29% in the past year.
The Bottom Line
Shares of Chesapeake Energy (CHK) have a 2.05% dividend yield, based on last night’s closing stock price of $17.08. The stock has technical support in the $14-$15 price area. If the shares can firm up, we see overhead resistance around the $18-$20 price levels.
Chesapeake Energy Corporation(CHK) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.