Morgan Stanley lifts Cheniere target, downgrades Excelerate on LNG outlook

Investing.com -- Morgan Stanley raised its price target for Cheniere Energy Inc (NYSE: LNG) to $255 per share, citing the expected expansion of its Sabine Pass facility after the U.S. lifted its pause on LNG project permitting.

The brokerage sees potential for 30-40 million tonnes per annum (mtpa) of new U.S. LNG projects to move forward over the next 12-18 months.

Cheniere is projected to report fourth-quarter EBITDA of $1.8 billion, above the $1.6 billion consensus. Updates on its Stage 3 commissioning and expansion plans will be key focus areas.

Whereas MS downgraded Excelerate Energy Inc (NYSE: EE) to "Underweight" from "Equal-weight," citing overvaluation, with a revised price target of $29.

Excelerate shares have risen about 65% over the past 6 months with brokerage noting it “now trade above estimate of fair value for the existing assets,” which includes locked in growth.

“While EE is a high quality business that serves as a key global LNG demand enabler, we do not believe the stock should reflect value for pre-final investment decision growth prospects until there is a clearer track record of execution,” analyst said.

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