Credit Suisse Reinstates/Upgrades Cheniere Energy (LNG) to Outperform (Earlier)

Credit Suisse earlier reinstated/upgraded Cheniere Energy (NYSE: LNG) from Neutral to Outperform with a price target of $84.00 (from $75.00).

Analyst Abhiram Rajendran said, "We have looked at all the different ways of valuing Cheniere's multiple projects and their associated different cash flows streams (capitalization rate, DCF, multiples). We are now including 90% value from the new projects as we think they are likely to proceed despite the commodity backdrop (although the timing on some of the uncontracted capacity could extend slightly longer). After factoring all of this in, our LNG TP looking out 12 months is $84, which amounts to ~30+% upside. We note that we arrive at this figure whether the Corpus Christi project resides at the LNG level or eventually gets dropped down to the CQP level."

"We note that our target valuation remains conservative vs. some of our peers on the street primarily to account for the recent broader sector re-rating and to factor in the new oil reality as well as the volatile nature of their marketing business—we think some of the highs need to be adjusted lower. While we think there could certainly be some near-term choppiness along with oil prices, the business should hold over the long run given its cost competitiveness vs. global LNG projects and where we currently see long-term oil (and gas) prices settling," he added.

For an analyst ratings summary and ratings history on Cheniere Energy click here. For more ratings news on Cheniere Energy click here.

Shares of Cheniere Energy closed at $64.88 yesterday.

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