Analyst Update: Chesapeake Energy, Anadarko Petroleum

Analysts revised their ratings and price targets on Chesapeake Energy Corporation (CHK), Anadarko Petroleum Corporation (APC), and Helmerich & Payne, Inc. (HP)

May 3, 2016 at 2:50 PM
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Analysts are weighing in on oil-and-gas stocks Chesapeake Energy Corporation (NYSE:CHK), Anadarko Petroleum Corporation (NYSE:APC), and Helmerich & Payne, Inc. (NYSE:HP). Here's a quick roundup of today's brokerage notes on CHK, APC, and HP.

  • CHK is sinking 9% to $5.99 today, with the sell-off in crude oil futures, as well as a price-target cut to $8 at Deutsche Bank, weighing on the shares. Chesapeake Energy Corporation is still ahead 33% year-to-date, and recently found a foothold atop its 200-day moving average. But while the stock has outperformed the broader S&P 500 index (SPX) by an incredible 95 percentage points over the past three months, analysts are still more than a little skeptical. Of the 18 brokerage firms providing coverage, only one rates the equity better than a "hold." Separately, the company is due to report first-quarter earnings on Thursday morning.
  • APC is down 4.7% to $49.51, as the firm's first-quarter revenue miss overshadows a slimmer-than-expected quarterly loss. What's more, the results were met with price-target hikes from Jefferies, Goldman Sachs, and Citigroup -- the latter of which set the highest target, at $65. Longer term, the shares have recovered 76% since hitting a seven-year low of $26.18 on Jan. 20. Options traders, meanwhile, have remained unusually bearish toward Anadarko Petroleum Corporation. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day put/call volume ratio of 1.09 ranks higher than 88% of all readings in the past year.
  • HP received a mixed bag of analyst notes after the company reported a wider-than-forecast loss for its fiscal second quarter on Monday morning. Specifically, Scotia Howard Weil downgraded Helmerich & Payne, Inc. to "sector perform," and Goldman Sachs lowered its price target on the stock to $58 from $60.50. Cowen and Company, Susquehanna, UBS, and Stephens, meanwhile, all raised their price targets to a range between $56 and $72. At last check, the shares are off 2.1% at $61.75, which should please short sellers. Short interest currently accounts for more than 22% of HP's total float, or nearly 12 days' worth of trading, at the security's typical pace.
For other stocks in analysts' crosshairs, read Analyst Upgrades: Diamond Offshore Drilling Inc, Texas Roadhouse Inc, and Royal Gold, Inc. and Analyst Downgrades: Community Health Systems, On Deck Capital Inc, and ACADIA Pharmaceuticals Inc.

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