Piper Jaffray analyst, Kashy Harrison, upgraded Chesapeake Energy Corporation (NYSE:CHK) from Underweight to Neutral with a price target of $4.50 after initiating coverage on the stock.

The analyst explains that with “completion of $950M of divestitures, a more lenient credit agreement, several debt/equity transactions and an improving gas narrative , we believe CHK’s default risk over the next two years is diminished.”

The analyst upholds that the company will be able to address upcoming maturities with success, and argues that CHK should benefit from an improving “near-term gas narrative.” Harrison concedes that the company has been hounded with a significant amount of debt, upcoming maturities, and a declining production profile. Despite these concessions, the analyst still maintains that the company will be able to hold its weight due to recent company actions and the ever-so-important improving gas narrative.

Kashy Harrison is ranked #2,691 out of 4,038 analysts. Harrison sees an average loss of (2.0%) and a success rate of 67%.