Chesapeake Energy (CHK) PT Raised to $101 at Mizuho

Mizuho analyst Nitin Kumar raised the price target on Chesapeake Energy (NASDAQ: CHK) to $101.00 (from $100.00) while maintaining a Buy rating.

The analyst commented: "Stock Reaction to PR - Mixed. While the focus may be on a headline earnings miss and macro trends (LNG, AI power gen etc.), the highlight of CHK's 1Q24 update, in our opinion, was the capex of $354mm - or ~16% below the guide. This boosted total FCF to $112mm vs. our estimate of $29mm and helped the company pay a small variable dividend of ~$0.14/sh in addition to the base dividend of $0.575/sh despite low natural gas prices. Management reiterated its plan to build productive capacity in anticipation of higher demand in 2025, while leaving volume and capital guidance unchanged. Our NAV-based PT moves to $101 from $100 and we reiterate Buy rating."

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