This Is What Drove Chesapeake Energy Corporation's Double-Digit Drop in October
Shares of Chesapeake Energy Corporation (NYSE: CHK) sold off in October, ending the month down 9.3%. The primary cause of that decline was a downgrade by analysts at Jefferies who, while noting the company's recent progress, still thought it was well behind rival drillers.
In early October, the Jefferies team downgraded Chesapeake Energy from hold to sell and set their price target at $2 per share. They did so citing the company's valuation and leverage. Overall, Jefferies said that Chesapeake "has made great strides to simplify the corporate structure and asset base." However, they noted that the company still has more than $9 billion in debt, which along with high fixed costs and a comparatively weak inventory of high-return drilling locations, made them less enthused by its prospects.
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Source: Fool.com
Chesapeake Energy Corp. Stock
With 16 Buy predictions and not the single Sell prediction the community is currently very high on Chesapeake Energy Corp..
Based on the current price of 2.64 € the target price of 93 € shows a potential of 3422.73% for Chesapeake Energy Corp. which would more than double the current price.
