Cheniere Energy (LNG): 'New Contract Adds Value', Deutsche Bank Raises PT to $67
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Price: $159.36 +1.23%
Rating Summary:
28 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
28 Buy, 2 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Deutsche Bank maintained a Buy rating on Cheniere Energy (NYSE: LNG) and increased its price target to $67.00 (from $57.00). Analyst Curt Launer thinks its new contract for LNG sales adds value.
"Cheniere (LNG) announced that it had achieved a liquefaction contract with Endesa for sales of liquefied natural gas that could include Endesa operations in Spain, Latin America, elsewhere in Europe and Morocco that will be sourced from the proposed Corpus Christi liquefaction facility at LNG. This facility is expected to be approved by the US DOE in early 2015 and to be under construction shortly after that with first deliveries in 2018," said Launer.
"Effectively, we are significantly increasing the valuation of the Corpus Christi facility by $5 by using a lower cost of equity to reflect the increased visibility of it being contracted and constructed, $2 per share for the incremental capacity contract and $3 because the contract contains provision allowing for a liquefaction fee of $3.50 per mmbtu that we expect to be the base for other expected contracts that will be signed for Corpus Christi. We expect additional information on the new contract and other details at the Cheniere Analyst day next Monday in Houston," added the analyst.
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 $57.59 yesterday.
"Cheniere (LNG) announced that it had achieved a liquefaction contract with Endesa for sales of liquefied natural gas that could include Endesa operations in Spain, Latin America, elsewhere in Europe and Morocco that will be sourced from the proposed Corpus Christi liquefaction facility at LNG. This facility is expected to be approved by the US DOE in early 2015 and to be under construction shortly after that with first deliveries in 2018," said Launer.
"Effectively, we are significantly increasing the valuation of the Corpus Christi facility by $5 by using a lower cost of equity to reflect the increased visibility of it being contracted and constructed, $2 per share for the incremental capacity contract and $3 because the contract contains provision allowing for a liquefaction fee of $3.50 per mmbtu that we expect to be the base for other expected contracts that will be signed for Corpus Christi. We expect additional information on the new contract and other details at the Cheniere Analyst day next Monday in Houston," added the analyst.
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 $57.59 yesterday.
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