- Chesapeake Energy's (NYSE:CHK) big debt load prompts a cautious view from analysts at Imperial Capital, who today initiated coverage of CHK with an In-Line rating and a $5 price target despite a "significant asset base [that] remains undervalued."
- While CHK "has come a long way over the past few years... there is still much to do to improve the financials, refine the portfolio and unlock its large asset base for investors," Imperial says.
- Imperial is more upbeat on Gulfport Energy (NASDAQ:GPOR), which it starts at Outperform with a $19 price target, as GPOR remains something of a "show me" story but the firm says it can make money at current nat gas prices while operations continue to improve and drive improved economics.
- The firm also initiates Gastar Exploration (NYSEMKT:GST) at In-Line with a $1 price target, as GST's valuable acreage is offset by remaining hurdles to clear operationally and financially before that value can be realized by investors.
- Now read: Chesapeake's Turnaround Is Working
Original article