Chesapeake Energy's stock surges after bullish analyst call, crude oil rally
Shares of Chesapeake Energy Corp. rallied 2.5% in premarket trade Tuesday, after an upbeat call by Raymond James analyst James Freeman and a rally in crude oil futures toward a 4-month high. Freeman affirmed his outperform rating while boosting his stock price target to $4.50, which is 43% above Monday's closing price, from $4.00. "While we believe that [Chesapeake] will modestly outspend cash flow in 2019, we believe that the company has a good chance of being roughly cash flow neutrality in 2020, a very positive step as the firm looks to continue paring down debt," Freeman wrote in a note to clients. Separately, crude futures rose 0.6%, putting them on track for the highest close since Nov. 12. Chesapeake's stock has soared 50% year to date, while continuous crude futures have run up 31% and the S&P 500 has climbed 13%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.