Chesapeake Energy's Stock Rallies On Heavy Volume After Bullish Note From Wunderlich Analyst
Shares of Chesapeake Energy Corp. ran up 3.9% in active afternoon trade Tuesday, after Wunderlich Securities published a bullish research note on the oil and gas company. Volume was 29.7 million shares in recent trade, enough to make the stock the sixth-most active listed on the NYSE. Wunderlich analyst Jason Wrangler reiterated his buy rating and $10 stock price target, which suggests potential for a near-doubling from current levels. He wrote in a note to clients that a "solid" Niobrara well test, and "good, oily" results from its Wedge and Oswego wells, "are positive developments as the company ramps activity in the areas with a focus on driving oil growth going forward." He said Chesapeake's stock provides "compelling valuation" along with exposure to natural gas, oil growth and and improving balance sheet. The stock has tumbled 24% year to date, while the SPDR Energy Select Sector ETF has lost 8.1% and the S&P 500 has gained 5.5%.
Copyright © 2017 MarketWatch, Inc.