Consensus rating for Chesapeake Energy
The majority of the analysts covering the stock—that is, around 67% of analysts—have recommended Chesapeake Energy (CHK) as a “hold.” The average broker target price of $7.54 for CHK implies a return of ~9% over the next 12 months.
Wall Street projections for Chesapeake
For 4Q16, analysts have projected an average earnings estimate of $0.09 per share for CHK. The low estimate stands at around -$0.03 per share, while the high estimate stands at $0.40 per share. The average revenue estimate for CHK is ~$2.1 billion for 4Q16, whereas the low revenue estimate stands at ~$2.02 billion. The high revenue estimate is ~$2.2 billion.
In December 2016, Mizuho initiated coverage on CHK. The most recent upgrade on CHK’s stock was in November 2016, when it was upgraded from “underperform” to “hold” by Jefferies.
CHK’s peers Antero Resources (AR) and Rice Energy (RICE) were also upgraded in November by Deustche Bank (DB). On the other hand, along with other analyst firms, Deutsche Bank downgraded Continental Resources (CLR) in December 2016.
All the above companies are components of the iShares US Oil & Gas Exploration & Production ETF (IEO) and together make up 2.8% of the fund.
Next, we’ll look at how the company performed in 3Q16.