Chesapeake downgraded to Neutral on modest cash flow at Mizuho

Mizuho downgraded Chesapeake Engery to Neutral from Buy with a $96 price target after reinstating coverage of the name. Although Chesapeake is well positioned in terms of inventory quality and depth for gas plays, it will see modest free cash flow at current gas prices, the analyst tells investors in a research note. The firm says that if the commodity outlook improves, the stock could outperform its neutral view. Meanwhile, deploying the cash from assets sales for acquisitions could be viewed negatively based on the assets and price paid, contends Mizuho.