Analyst lowers score on Chesapeake Energy
A Morgan Stanley analyst lowered his score Monday on Chesapeake Energy Corp., saying it’s on monitor to deliver manufacturing growth but there are few “company-specific catalysts” that could move the stock price.
In a research note to clients, analyst Stephen Richardson downgraded Chesapeake to “equal-weight” from “overweight.”
Chesapeake is on observe to improve manufacturing by 8 percent to 10 percent this year, he stated.
“The company is extremely levered for the normal gas strip and the Large 6 shale plays remain the primary development drivers for (Chesapeake) going forward,” Richardson said.
“We still see upside from present levels, but view risk-reward as much more balanced nowadays,” he stated.
Shares of Chesapeake fell 22 cents to close at $25.42.
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