Cheniere Energy (LNG) PT Raised to $83 at BofA Securities

April 14, 2021 7:30 AM EDT
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Price: $82.65 +2.77%

Rating Summary:
    25 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

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    Up: 38 | Down: 18 | New: 7
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BofA Securities analyst Julien Dumoulin-Smith raised the price target on Cheniere Energy (NYSE: LNG) to $83.00 (from $79.00) while maintaining a Buy rating ahead of an expected an expected solid 1Q21 update. BofA raised ’21 EBITDA slightly to $4.3bn, to the high end of Cheniere’s recently raised $4.1-$4.4bn guidance.

The analyst stated "We forecast 1Q21 adj. EBITDA of $1.08bn, relative to $1.03bn consensus. Solely on a spot/forward basis, we estimate that margins for the remainder of the year have improved by $0.50-$1.00/mmbtu from a quarter ago, following record-level ~$20/mmbtu JKM prices at the start of 2021. We continue to see a supportive commodity env’t driven by Asian demand with European storage inventories now below 5-yr avg levels. That said, do not expect the full benefit to translate directly into higher earnings as Cheniere has pre-sold 95%+ of production volumes for ’21. Recall guidance w/ 4Q20 results that a $1/mmbtu change in marketing margin would impact FY2021 adj. EBITDA by roughly $50mn. We note that Cheniere had ~50 Tbtu of unsold marketing volumes as of its latest update. TX storms likely only had a minor cost impact from Corpus shutdown, with vols likely re-directed to Sabine Pass. Third-party trading volumes could be a swing factor (to the upside)."

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