(By Balaseshan) Deutsche Bank (DB) lowered its price target on shares of Chesapeake Energy Corp. (NYSE:CHK) to $22 from $29, while maintaining its "Hold" rating.
The brokerage's view at Chesapeake Energy historically has been that with a robust opportunity set and operational track record the company could deliver on production targets.
Simply, as long as Chesapeake Energy delivered operationally, balance sheet concerns would take a back seat.
While funding and corporate governance concerns have dominated recent market focus, reduced 2012/13 liquids production guidance is likely to shift market focus to relative value and margin growth outlook versus peers.
Chesapeake Energy is a natural gas and oil exploration and production company. Chesapeake is engaged in the exploration, development and acquisition of properties for the production of natural gas and oil from underground reservoirs. It also provides substantial marketing, midstream, drilling and other oilfield services.
CHK is trading down 13.67% at $16.92 on Wednesday.