- Chesapeake Energy (CHK -1.2%) is reiterated with a Buy rating and $10 price target at Wunderlich, which says CHK is making the right moves to solidify itself in the near term to take advantage of the future.
- Wunderlich believes "if investors look through the noise and focus on the company, there is ample opportunity" in CHK: The debt and convertible debt issuances will help build a war chest for future redemptions and activity, converting preferred stock to common will further simplify the balance sheet, and the company now has plenty of cash with expected from its divestiture plan.
- The firm says it likes the moves CHK has made and, given its discounted trading metrics vs. peers, expects shares to outperform as the company continues to excel operationally and financially.