Chesapeake Energy — With Caveats!
Chesapeake Energy Corp. (NYSE: CHK) is being featured with a caveat: this was an analyst upgrade, but not to Buy. After catching a break on its credit agreement terms the prior week, Chesapeake was raised to Hold from Sell at Tudor Pickering early last week. That may seem unenthusiastic, but this does at least remove one more of the most negative sell ratings on Wall Street. Its stock rose 19.7% to close at $4.50 on Monday, but then shares rose another 34% to close at $6.05 on Tuesday after the upgrade.
Chesapeake’s closing price on Friday was $6.03, and its 52-week trading range is $1.50 to $16.98. Chesapeake has a consensus target price of $3.92, up only slightly from the $3.86 consensus target earlier in the week.
Continental Resources Inc. (NYSE: CLR) was raised to Buy from Hold on Wednesday with a price target of $40 by Deutsche Bank in a call of four exploration and production stocks to buy. This compares to a $33.75 prior close. If Deutsche Bank’s target is hit, then there is over 18% upside left here.
Continental Resources closed at $33.71 on Friday, and it has a consensus target price of $33.52 and a 52-week range of $13.94 to $53.65. It has a market cap of $12.5 billion.
Devon Energy Corp. (NYSE: DVN) snagged a late-week upgrade on Friday. It was raised to Buy from Hold at Evercore ISI with a price target that was raised to $40 from $30. Thursday’s closing price of $31.35 implied upside of 28% if that target proves to be correct. Devon Energy closed up only five cents at $31.40 on Friday.
Devon’s late-week pricing action implies that there was almost no bullishness viewed from the call itself, if not an outright disdain or lack of enthusiasm for perhaps being late to the party. Devon Energy has a consensus price target of only $32.38.
The 52-week trading range is $18.07 to $70.48, and Devon has a market cap of $16 billion.
QEP Resources Inc. (NYSE: QEP) was started as Overweight with a $17 price target at JPMorgan last Tuesday. This was versus a $14.42 prior close, and its shares ended the week at $14.56. This leaves implied upside of roughly 17%, if the analysts making this call are proven to be correct.
The consensus analyst price target is $17.13, and the 52-week range is $8.54 to $23.90. The market cap is rather small at $3.1 billion.
Other key oil, gas and energy stories from this past week worth a look: