Traders are keeping a close eye on Chesapeake Energy Corporation (NYSE:CHK) on Wednesday after Stephen Richardson of Evercore ISI added the oil and gas producer to the firm’s ‘Tactical Outperform List’. Richardson is bullish due to Chesapeake’s ~20% year-to-date pull back and relatively low expectations by many market traders. Furthermore, the analyst thinks that incremental wells from Anadarko and other basins could lead to more production and improve sentiment for the stock. Evercore has a $8 target price.
In addition to the Evercore news, traders will be keeping a close eye on Chesapeake due to Wednesday’s upcoming EIA inventory report. If the EIA report is better than expectations, oil prices could rise and help improve Chesapeake sentiment. As it stands, many oil and gas securities have lagged the rally in crude in recent weeks and bulls hope that dynamic will change in the future.
What Does The Smart Money Sentiment Say?
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According to our data of 742 elite funds, the number of funds long Chesapeake Energy Corporation (NYSE:CHK) didn’t change at 41 from the end of Q3 to the end of Q4, but the amount held decreased to $884.01 million from $1.33 billion in the same time frames.
The Bottom Line
Chesapeake Energy Corporation (NYSE:CHK) is trending due to bullish Wall Street commentary. For more reading, check out ‘8 Countries That Produce The Most Crude Oil In the World‘.