Oklahoma City-based Chesapeake Energy Corp.’s stock hit a 52-week low on Monday after an analyst downgrade.
The stock dipped more than 4 percent to as low as $19.05 per share before rebounding slightly. The previous 52-week low was $19.19.
The price drop followed after City analyst Robert Morris downgraded the company to “Neutral” from “Buy” based on continued low natural gas prices. Morris lowered his price target to $22 per share, down from his previous target of $28 per share.
Morris said low natural gas prices will cut into Chesapeake’s revenues and make it tougher for the company to raise money to fund future projects.
The stock price recovered to $19.26 per share by 2 p.m. Monday, but was still down 69 cents, or nearly 3.5 percent, on the day.