NEW YORK (TheStreet) -- Chesapeake Energy (CHK) received a vote of confidence from several analysts before market trading on Monday.
Analysts at Tudor upgraded the company's rating to "hold" from "trim" and analysts at KLR Group upgraded it to "buy" from "accumulate". Meanwhile Jefferies (JEF) raised its price target on the shares to $35 from $31.
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The upgrades follows the company's Friday announcement that it is planning to spin off its drilling rig business in an effort to raise $3.1 billion in capital and cut operating cash flow by $250 million this fiscal year.
TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: