Chesapeake Energy Corp (CHK)

[Couch]

March 23, 2017, 10:29 A.M. ET
Wait, Chesapeake Energy Can Double?!?!

http://blogs.barrons.com/stockstowatchtoday/2017/03/23/wait-chesapeake-energy-can-double/?mod=yahoobarrons&ru=yahoo&yptr=yahoo

The energy sector has not been the place to be this week–or even this year–as sinking oil prices have taken their toll. And that’s especially true for some of the riskier energy companies like Chesapeake Energy (CHK), which has tumbled 28% in 2017.

That didn’t stop Stifel analysts Karl Chalabala and Jane Trotsenko from initiating coverage of Chesapeake Energy with a Buy rating yesterday after the close. They explain why:

Following a wave of asset divestitures, debt repayments and midstream obligation renegotiations, we believe Chesapeake is well-positioned to succeed in the North American shale low-price commodity environment. With multiple top-tier break-even economic assets, a company-wide technology revolution that foreshadows further productivity gains beyond current results we believe the street is overlooking and 50% of its production wedge exposed to our bullish Gulf Coast demand imbalance – as well as a compelling valuation – we believe Chesapeake shares are poised to outperform. We are initiating coverage with a Buy rating and $10 target price

Shares of Chesapeake Energy have gained 0.6% to $5.03 at 10:22 a.m. today, meaning the stock would have to nearly double to hit Stifel’s $10 target.