UPDATE: Deutsche Bank Upgrades Chesapeake Energy to Hold

In a company update published earlier today, Deutsche Bank AG upgraded the rating for Chesapeake Energy CHK from Sell to Hold, but did not name a price target. Deutsche Bank said in its report “Chesapeake Energy closed a $4BN term loan yesterday, which increased its liquidity to $4.7BN. Our previous rating was driven by a combination of (i) concerns over additional debt issuance for liquidity and (ii) fundamental natural gas risk as CHK is 0% hedged for 2012. With this financing, the company has alleviated one of our major risks giving them the runway to sell assets and finance FCF burn. While natural gas pricing risk is still an issue, we have seen pricing firm in the last couple of weeks, which is also beneficial to CHK.” Chesapeake Energy closed yesterday at $14.65.