Yesterday, shares of the Oklahoma City-based oil and natural gas company rose 6.1% on heavy trading volume to close at their highest level since May 2.
Additionally, the company has made efforts to shore up its balance sheet and improve liquidity. Last week, Chesapeake upsized its term loan to $1.5 billion from $1 billion due to strong demand, MarketWatch noted.
However, despite recent rallies in the stock and rising bond prices, GimmeCredit analyst Philip Adams remained negative on the company's credit outlook.
Adams expects "additional impairments and a further reduction in asset coverage" of borrowings during the third quarter, MarketWatch said.
"The market says we're late, but it is too soon to dive in, particularly on the unsecured notes - repeat underperform," he wrote in a note yesterday.
Shares of Chesapeake were declining in pre-market trading on Wednesday as oil prices fell.
Crude oil (WTI) was retreating 1.85% to $47.21 per barrel and Brent crude was down 1.16% to $49.38 per barrel early this morning.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of E+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CHK