Chesapeake Energy's stock rallies after getting bullish endorsement from UBS analyst

Shares of Chesapeake Energy Corp. rallied 1.9% in afternoon trading, after the oil and natural gas company received a bullish endorsement from UBS analyst Lloyd Byrne citing a "clean" balance sheet and discounted valuation. Byrne started coverage of Chesapeake with a buy rating and stock price target of $88, which implied a 35% upside from current levels. Since the company emerged from bankruptcy in February and announced in August a deal to buy Vine Energy Inc. for $2.2 billion, Byrne said Chesapeake offers investors low financial leverage, deep inventory of quality assets in its core natural gas plays, sustainable free cash flow with increasing returns to shareholders, strategic crude optionality from higher prices and/or monetization and attractive valuation. "While appointment of a new CEO has taken longer than expected we do expect the announcement is imminent," Byrne wrote in a note to clients. "Once appointed, we expect the company to accelerate divesting assets that are not being allocated additional capital." The stock has rallied 20.1% over the past three months, while the SPDR Energy Select Sector ETF has gained 5.8%, natural gas futures have shot up 57.0% and the S&P 500 has tacked on 1.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Chesapeake Energy's stock rallies after getting bullish endorsement from UBS analyst
Shares of Chesapeake Energy Corp. rallied 1.9% in afternoon trading, after the oil and natural gas company received a bullish endorsement from UBS analyst Lloyd Byrne citing a "clean" balance sheet and discounted valuation. Byrne started coverage of Chesapeake with a buy rating and stock price target of $88, which implied a 35% upside from current levels. Since the company emerged from bankruptcy in February and announced in August a deal to buy Vine Energy Inc. for $2.2 billion, Byrne said Chesapeake offers investors low financial leverage, deep inventory of quality assets in its core natural gas plays, sustainable free cash flow with increasing returns to shareholders, strategic crude optionality from higher prices and/or monetization and attractive valuation. "While appointment of a new CEO has taken longer than expected we do expect the announcement is imminent," Byrne wrote in a note to clients. "Once appointed, we expect the company to accelerate divesting assets that are not being allocated additional capital." The stock has rallied 20.1% over the past three months, while the SPDR Energy Select Sector ETF has gained 5.8%, natural gas futures have shot up 57.0% and the S&P 500 has tacked on 1.3%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.