Oppenheimer Cuts PT on Chesapeake Energy (CHK) on Lower Natural Gas Prices
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Price: $90.69 +2.44%
Rating Summary:
18 Buy, 18 Hold, 9 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
18 Buy, 18 Hold, 9 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Oppenheimer lowered its price target Chesapeake Energy (NYSE: CHK) from $28 to $24, but kept a Outperform rating.
The lower price target reflect lower than expected natural gas and NGL prices based on NYMEX futures on continued oversupply. The company has no natural gas hedges.
"The new price target is 13.6x our 2014 earnings per share estimate and 3.5x operating cash flow; both are above the peer average for large E&Ps but within CHK's historical multiple range. CHK will use divestiture proceeds to close its funding gap this year and next and intends to reduce its LT debt this year to the $9.5 billion target it set three years ago, though past its initial timeframe of year-end 2012," the analyst comments.
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 $17.55 yesterday.
The lower price target reflect lower than expected natural gas and NGL prices based on NYMEX futures on continued oversupply. The company has no natural gas hedges.
"The new price target is 13.6x our 2014 earnings per share estimate and 3.5x operating cash flow; both are above the peer average for large E&Ps but within CHK's historical multiple range. CHK will use divestiture proceeds to close its funding gap this year and next and intends to reduce its LT debt this year to the $9.5 billion target it set three years ago, though past its initial timeframe of year-end 2012," the analyst comments.
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 $17.55 yesterday.
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