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Chesapeake's huge Thursday rally not justified, analyst says

Published 02/23/2018, 02:29 PM
© Reuters.  Chesapeake's huge Thursday rally not justified, analyst says
CHK
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  • Chesapeake Energy (CHK -2%) gives back a chunk of yesterday's huge rally, which Bernstein analyst Bob Brackett says caught him by surprise since he sees little in the company's earnings report to justify the ~20% jump.
  • Noting the relatively high short interest in CHK, Brackett says he "not rule out a short squeeze."
  • While CHK expects to close another $500M in asset sales during H1 2018, Brackett sees such transactions which take away EBITDA as "a means of disinvestment, not value creation."
  • The firm rates CHK at Market Perform.
  • Source: Bloomberg First Word
  • Now read: Why The Market Liked Chesapeake's Q4 Report


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