Canaccord Genuity maintains a 'Buy' on Chesapeake Energy (CHK); Main Concern Liquidity Over Corporate Governance

Canaccord Genuity maintains a 'Buy' on Chesapeake Energy (NYSE: CHK) price target lowered from $35 to $26.

Analyst, John Gerdes, said, "We are decreasing our price target due to a lower ’13+ capital spending/production outlook, a lower oil composition, a narrower marketing margin and higher capital spending outside the exploration and production business."

"We believe Chesapeake’s Board is taking the steps necessary to improve corporate governance. First, Chesapeake announced it is terminating CEO McClendon's founder well participation program 18 months early on June 30, 2014. No compensation will be paid. Second, McClendon will relinquish his position as Chairman of the Board, though he will remain CEO...However, this morning’s allegation that McClendon managed a hedge fund with natural gas positions is troubling. Consequently, Chesapeake may need to take further steps to assuage corporate governance concerns."

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

Shares of Chesapeake Energy closed at $16.74 yesterday.

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