UPDATE: JPMorgan Downgrades Cheniere Energy Partners, LP (CQP) to Underweight
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JPMorgan analyst Jeremy Tonet downgraded Cheniere Energy Partners, LP (NYSE: CQP) from Neutral to Underweight with a price target of $44.00 (from $43.00).
The analyst comments "While we remain constructive on long-term global LNG demand, CQP screens less favorable on a variety of metrics in our forced ranker. Namely, CQP possesses a notably lower FCF yield and higher EV/EBITDA valuation. While we believe CQP deserves a premium, we see the potential for higher beta with greater exposure to recovering production and prices to appreciate more and narrow this gap, particularly given our colleagues’ calls for a commodity super cycle and energy sector outperformance. As CQP maintains the lowest beta to WTI prices in this group and with the valuation screening expensive, we downgrade CQP to UW from N."
Shares of Cheniere Energy Partners, LP closed at $43.61 yesterday.
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