Analysts’ recommendations for Chesapeake Energy
Following Chesapeake Energy’s (CHK) 4Q15 earnings, Wall Street analysts updated their target prices for the company for the next 12 months.
Consensus rating for Chesapeake Energy
Approximately 10% of analysts have rated CHK as a “buy,” ~58% have rated it as a “hold,” and ~32% have rated it as a “sell.” The average broker target price of $4.17 for CHK implies a return of around 55% over the next 12 months.
Upstream peers WPX Energy (WPX), QEP Resources (QEP), and Gulfport Energy (GPOR) have average broker target prices of $7.7, $16.5, and ~$34, respectively. These figures imply returns of ~96%, 65%, and 31%, respectively, in the next 12 months.
The high, low, and median analyst target prices for Chesapeake Energy are $10, $0.5, and $4, respectively.
Chesapeake Energy is a component of the Energy Select Sector SPDR ETF (XLE). XLE invests ~0.3% of its portfolio in the company.
Analysts’ target prices for CHK
Evercore and Scotia Howard Weil gave CHK two of the most optimistic target prices of $6 and $5, respectively, implying returns of around 123% and 86%, respectively, in the next 12 months.
RBC Capital Markets and Capital One Securities gave CHK lower target prices of $4 and $3.5, respectively, implying returns of around ~49% and 30% in the next 12 months.
Jefferies and Barclays (BCS) gave Chesapeake Energy two of its lowest target prices of $2 and $1, respectively. These prices imply negative returns of ~26% and 63%, respectively, over the next year.
For a detailed overview of Chesapeake Energy, read Will Chesapeake Energy Succumb to an Energy-Driven Debt Crisis?