Wall Street Recommendations for Cheniere Energy Partners



Wall Street recommendations 

In this part, we’ll take a look at recent recommendations that brokers provided for Cheniere Energy Partners (CQP) ahead of its 1Q15 earnings release on April 29.

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Consensus ratings

It’s important to note that 66.7% of analysts rated Cheniere Energy Partners as “buy,” while the remaining 33.3% rated the company as “hold.” The consensus 12-month target price was $39.57—a premium of ~24% to Cheniere Energy Partners’ ~$31.93 stock price as of April 22, 2015.

Individual ratings

U.S. Capital Advisors and Credit Suisse (CS) gave the most optimistic target price for Cheniere Energy Partners’ stock at $41. This implies expected returns of about 28% over the next 12 months. While Credit Suisse provided an “outperform” rating, U.S. Capital Advisors—a financial services firm—recommended Cheniere Energy Partners as a “buy.”

Another company that provided a “buy” rating was Clarkson Capital Markets—a boutique investment banking firm. It provided a target price of $38. This implies returns of ~19% over the next 12 months.

Like Credit Suisse, RBC Capital Markets, a Canadian investment bank, also provided an “outperform” rating. It provided a target price of $39—implying returns of 22% over the next 12 months.

Scotia Howard Weil also provided a $39 target price. It rates Cheniere Energy Partners as “sector outperform.”

Raymond James rated the company as “market perform.” This means it expects that Cheniere Energy Partners won’t do better or worse than the broad market.

The most pessimistic target price of $37 was provided by Barclays (BCS). This implies expected returns of ~16% over the next 12 months.

Cheniere Energy Partners is a publicly traded MLP (master limited partnership). It was created by Cheniere Energy (LNG). Cheniere Energy owns 100% of Cheniere Energy Partners’ general partner—Cheniere Energy Partners GP, LLC. Cheniere Energy is part of the iShares U.S. Energy ETF (IYE). It accounts for 1.01% of IYE.

Cheniere Energy Partners expects to announce its earnings for 1Q15 on April 29. For the latest updates on the Energy sector, visit Market Realist’s Energy and Power page.


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