Seaport Global Securities Starts Chesapeake Utilities (CPK) at Neutral

Seaport Global Securities initiates coverage on Chesapeake Utilities (NYSE: CPK) with a Neutral rating and a price target of $65.00.

Analyst Mark Levin commented, "We are initiating coverage of Chesapeake Utilities Corporation (CPK) with a Neutral rating and $65 price target. CPK can best be described as a diversified energy company supported by stable, constructively regulated core utility and pipeline businesses. The regulated businesses (~84% of operating income) are supplemented by a collection of ancillary enterprises (e.g., propane, combined heat and power plants, and gas gathering assets). CPK focuses on the natural gas markets (85% of average investment) and consistently produces among the best returns on equity and capital in the local distribution company (LDC) industry. With that said, we think the shares are fairly valued, discounting long-term EPS growth above 10%. We would wait for a more attractive entry point before initiating positions."

For an analyst ratings summary and ratings history on Chesapeake Utilities click here. For more ratings news on Chesapeake Utilities click here.

Shares of Chesapeake Utilities closed at $64.60 yesterday.

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