real-time news and commentary for investors
Friday, Oct 11
Chesapeake cut to Hold at Stifel on fair valuation
- Chesapeake Energy (CHK -0.9%) is downgraded to Hold from Buy at Stifel Nicolaus on fair valuation, expectations for no production growth heading into 2014, and a view that ongoing efficiency improvements and additional potential non-core asset sales will not add enough meaningful upside potential to shares.
- Stifel thinks investors will begin to shift their investment focus from P/NAV discounts to EBITDA multiples and the growth outlook for CHK; as the shift happens, CHK looks fairly valued on an absolute basis and will underperform relative to its peers, the firm believes.