Stifel Analyst Calls Downside in Chesapeake (CHK) Shares an Overreaction

Stifel Nicolaus' Amir Arif said in an intraday research note Wednesday the downside in Chesapeake (NYSE: CHK) shares related to CEO Aubrey McClendon's personal loans is an overreaction. The stock is down about 7 percent to $17.80 at last check.

Arif insisted Chesapeake is not the guarantor of the loans but suggested this leveraging seems to reinforce the market's current sentiment of poor corporate governance at the company. While the analyst maintains a Buy on Chesapeake shares, he said he wants investors to focus on Exploration & Production companies with clean balance sheets and a lack of "cash flow outspend funding" problems.

To track all the market-moving analyst action on shares of Chesapeake, visit our Analyst Ratings page.

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