Chesapeake downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Chesapeake Energy to Neutral from Overweight with a price target of $96, down from $97. The analyst still has longer term concerns on shale inventory depth, but sees a better 6-12 month risk/reward in a number of U.S. shale levered stocks given better free cash flow yields amid the higher commodity price environment and improving capital efficiency. However, the firm downgraded Chesapeake on valuation. The stock is currently among the most expensive of the natural gas focused exploration and production companies, contends JPMorgan.