Analyst Update: Chevron Corporation, Chesapeake Energy Corporation, and Energy Recovery, Inc.

Analysts are weighing in on Chevron Corporation (NYSE:CVX), Chesapeake Energy Corporation (NYSE:CHK), and Energy Recovery, Inc. (NASDAQ:ERII)

by Celeste Taylor

Published on Sep 13, 2016 at 3:29 PM

Analysts are weighing in on several energy stocks, including Dow component Chevron Corporation (NYSE:CVX), Chesapeake Energy Corporation (NYSE:CHK), and Energy Recovery, Inc. (NASDAQ:ERII). Here's a quick roundup of today's brokerage notes on CVX, CHK, and ERII.

  • CVX is down 2.4% at $99.78, as a steep drop in crude oil futures overshadows a fresh "outperform" rating and $120 price target at BMO. Nevertheless, CVX is up over 30% during the past year, with the $99-$100 region emerging as support. Chevron Corporation's (NYSE:CVX) 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) currently sits at 5.79, higher than 98% of all other readings from the past 12 months. Should these bearish bets begin to unravel, they could provide the perfect tailwinds to boost the energy stock extend its quest for annual highs.

  • CHK is down 10.2% at $7.23, after FBR began coverage on the stock with an "underperform" rating and a $5 price target – a 30% discount to CHK's current price. The oil-and-gas stock has had a standout year so far, however, with shares up over 60% since the beginning of 2016, and recovering 382% since hitting a 16-year low of $1.50 in February. Option players are also optimistic towards CHK, with CHK's 50-day call/put volume ratio at the ISE/CBOE/PHLX of 2.08 sitting higher than 80% of all other readings from the past 12 months. 

  • ERII is up 2.1% at $12.96, bucking the broader oil swoon, after Jefferies upgraded the stock to "buy" and more than doubled its price target, to $20 from $8. ERII is up 438.5% year-over-year, with the shares hitting an all-time high of $14.29 last week. Short interest in the stock is down 12.4% over the last two reporting periods, although 8.6% of Energy Recovery, Inc.'s (NASDAQ:ERII) float is still sold short, which would take over 13 days of trading to cover, at ERII's average daily volume. A sudden exodus of short sellers could lend the stock a nice tailwind.
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