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LNG and CQP: Analysts’ Recommendations and Target Prices

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Target price

Analysts seem positive on Cheniere Energy (LNG) stock. The stock offers a potential upside of ~22% based on analysts’ target price of $79.5. Cheniere Energy closed at $65.2 on May 8. Among the 19 analysts covering Cheniere Energy, 95% recommended a “buy,” while one recommended a “hold.” The company hasn’t received a “sell” rating from any of the analysts in more than a year.

LNG stk

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The above chart shows how analysts’ views on Cheniere Energy stock changed in the last six months.

Cheniere Energy stock is trading at a forward EV-to-EBIDTA multiple of 13.5x, which is higher than peers’ average of 11.2x. The company’s higher multiple indicates a premium valuation compared to its peers.

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Cheniere Energy Partners

Cheniere Energy Partners (CQP) stock seems to have a downside potential of 5.6% based on analysts’ mean target price of $41.3. Currently, Cheniere Energy Partners is trading at $43.7. Among the 18 analysts tracking Cheniere Energy Partners, 11 recommended a “hold,” four recommended a “strong buy,” one recommended a “buy,” and two recommended a “sell.”

Cheniere Energy Partners is trading at a distribution yield of 5.6% compared to the Alerian MLP ETF’s (AMLP) 8.1%. Cheniere Energy Partners declared a quarterly distribution of $0.60 per share, which will be paid on May 15. The company has increased its distribution per share 5.2% compounded annually in the last five years.

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