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Robert Baird Gets Bullish on Apache Corp, Chesapeake Energy (APA, CHK)

Analysts at Robert W. Baird & Co. on Tuesday released some very positive commentary on natural gas producers Apache Corporation ( APA ) and Chesapeake Energy Corporation ( CHK ).

The firm initiated coverage on APA with an "Outperform" rating and a $129 price target, suggesting a massive 37% upside to the stock's Monday closing price of $93.94. Baird said the move was a valuation call.

Meanwhile, the analyst also starter coverage on CHK as an "Outperform" with a $36 price target. That target implies a potential 52% upside to the stock's Monday closing price of $23.72. Baird noted the stock is trading at a big discount to its net asset value.

Apache shares posted modest gains in premarket trading Tuesday, while Chesapeake shares rose 52 cents, or +2.2%.

The Bottom Line

Shares of Apache Corp ( APA ) have a .64% dividend yield, based on last night's closing stock price of $93.94. The stock has technical support in the $85-$86 price area. If the shares can firm up, we see overhead resistance around the $100-$105 price levels. Shares of Chesapeake Energy ( CHK ) have a 1.48% dividend yield, based on last night's closing stock price of $23.72. The stock has technical support in the $20-$22 price area. If the shares can firm up, we see overhead resistance around the $26-$28 price levels.

Apache Corporation ( APA ) and Chesapeake Energy Corporation ( CHK ) are both rated "Neutral" by Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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