Here’s Why Chesapeake Is Having a Good Day
Chesapeake Energy Corp. (NYSE:CHK) shares jumped 3 percent on Monday after BMO Capital Markets raised its rating on the company from “market perform” to “outperform.”
The oil and natural gas producer has underperformed other energy stocks on analyst Dan McSpirit’s list by more than 20 percent since the beginning of April, in the wake of potential conflicts surrounding CEO Aubrey McClendon. However, McSpirit said Chesapeake “is a company with a deep and wide asset base, and one that has fundamental value, in our opinion.”
Uncertainties around dropping natural gas prices and asset sales have already been factored in to Chesapeake’s (NYSE:CHK) lower share price, said McSpirit. At current levels, Chesapeake “presents an attractive opportunity for investors looking to venture out on this risk curve,” he said.