Chesapeake Energy (NYSE: CHK) was downgraded by equities researchers at Ladenburg Thalmann from a “buy” rating to a “neutral” rating in a report issued on Wednesday. They currently have a $20.00 target price on the stock, down from their previous target price of $32.00.
The analysts wrote, “Concurrent with Q1 results, CHK reduced its liquids production guidance for 2012 by ~13 MMBbls (~25%) and for 2013 by ~19 MMBbls (~25%). We estimate about one half of the reductions are due to planned asset monetizations (Permian Basin, Mississippi Lime, Eagle Ford VPP and others) with the other one-half due to a planned reduction in its liquids rigs (from an average of 123 operated liquids rigs in Q1 to an average of ~115 rigs in 2H ’12) and infrastructure (Eagle Ford) and other constraints.”
Shares of Chesapeake Energy traded down 14.59% during mid-day trading on Wednesday, hitting $16.74. Chesapeake Energy has a one year low of $16.78 and a one year high of $35.75. The company has a market cap of $10.710 billion and a P/E ratio of 8.46.
The company last announced its quarterly results on Tuesday, May 1st. It reported $0.18 earnings per share (EPS) for the previous quarter, missing the Thomson Reuters consensus estimate of $0.28 EPS by $0.10. The company’s quarterly revenue was up 50.1% on a year-over-year basis. On average, analysts predict that Chesapeake Energy will post $0.34 earnings per share next quarter.
Other equities research analysts have also recently issued reports about the stock. Analysts at Robert W. Baird downgraded shares of Chesapeake Energy from an “outperform” rating to a “neutral” rating in a research note to investors on Wednesday. They now have a $22.00 price target on the stock, down previously from $30.00. Separately, analysts at BMO Capital Markets upgraded shares of Chesapeake Energy from a “market perform” rating to an “outperform” rating in a research note to investors on Monday. They now have a $25.00 price target on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Chesapeake Energy in a research note to investors on Thursday, April 26th. They now have a $19.00 price target on the stock.
Chesapeake Energy Corporation (Chesapeake) is a natural gas and oil exploration and production company.