UPDATE: Benchmark Starts Chesapeake Energy (CHK) at Buy
Benchmark analyst Subash Chandra initiates coverage on Chesapeake Energy (NASDAQ: CHK) with a Buy rating and a price target of $137.00.
The analyst comments "CHK has choreographed its exit from bankruptcy to pursue a long-term return-of-capital model that is not fully appreciated in the company’s discount multiple to the E&P sector and other gas stocks. The company has acquired $5B of assets in the last six months to build scale and inventory. These acquisitions have improved the company’s capital intensity, requiring proportionately less capital to maintain higher production volumes. The primary goal is to return FCF to investors through base dividends, variable dividends and share buybacks."
Shares of Chesapeake Energy closed at $94.17 yesterday.
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