In this part of the series, we’ll take a look at recent recommendations that brokers have provided for Cheniere Energy Partners (CQP) ahead of its 2Q15 earnings release on July 29.
Of analysts surveyed by Bloomberg, 81.8% rate CQP as a “buy,” while the remaining 18.2% rate the company as a “hold.” The consensus 12-month target price of $39.71 is a ~23% premium to CQP’s ~$32.15 stock price as of July 14, 2015.
Goldman Sachs (GS) gave the most optimistic target price for CQP at $44. This price implies returns of about 37% over the next 12 months. The investment bank provided a “buy/attractive” rating.
US Capital Advisors and Credit Suisse (CS) also gave an optimistic target price. Both gave a target price of $41, implying returns of ~28% over the next 12 months. While Credit Suisse provided an “outperform” rating, financial services firm US Capital Advisors recommends CQP as a “buy.”
Another “buy” rating came from Clarkson Capital Markets, a boutique investment banking firm, which provided a target price of $38. This price implies returns of 18% over the next 12 months.
Like Credit Suisse, RBC Capital Markets, a Canadian investment bank, also provided an “outperform” rating, providing a target price of $39. This price implies returns of 21% over the next 12 months.
Scotia Howard Weil also provided a $39 target price. It rates CQP as “sector outperform.”
Raymond James rated the company as “market perform.” This means it expects CQP to do no better or worse than the broad market.
The most pessimistic target price of $37 came from Barclays (BCS). This price still implies returns of ~15% over the next 12 months.
Cheniere Energy Partners is a publicly traded master limited partnership. It was created by Cheniere Energy (LNG), which owns 100% of Cheniere Energy Partners’ general partner, Cheniere Energy Partners GP, LLC. Cheniere Energy Partners is in the process of constructing liquefied natural gas facilities, and it should become the first exporter of LNG from the lower 48 US states. Other future exporters include Chevron (CVX) and Sempra Energy (SRE). CVX makes up 11% of the iShares US Energy ETF (IYE).
Cheniere Energy Partners expects to announce its earnings for 2Q15 on July 29. Stay tuned to Market Realist’s Energy and Power page for updates and analysis on the energy sector.