Shares of Chesapeake Energy (CHK) - Get Report were rising over 1.5% during midday trading on Thursday after Stifel initiated coverage on the stock with a "buy" rating and a $10 price target.

The producer of natural gas is well positioned to succeed in the North American shale low-price commodity environment, Stifel analyst Karl Chalabala wrote.

Chalabala also believes the 2018 and 2019 gas strip has significant upside, and that investors are ignoring a company-wide technology revolution that will boost productivity beyond current results.

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