Cheniere Energy price target raised to $288 from $282 at Jefferies

Investing.com - Jefferies raised its price target on Cheniere Energy (NYSE:LNG) to $288 from $282 on Thursday, while maintaining a Buy rating on the $52.6 billion market cap liquefied natural gas company’s stock. According to InvestingPro data, the company has demonstrated strong profitability with $7.1 billion in EBITDA over the last twelve months.

The price target increase follows Cheniere’s Wednesday announcement that it reached a final investment decision (FID) for its Corpus Christi Liquefaction (CCL) Stage 3 Trains 8-9 expansion project, alongside a capital allocation update.

According to Jefferies, Cheniere plans to simultaneously pursue growth opportunities while deleveraging its balance sheet and increasing shareholder returns, demonstrating a comprehensive capital deployment strategy.

The firm noted that Cheniere management intends to deploy more than $25 billion this decade and aims to expand production capacity to approximately 75 million tonnes per annum (mtpa), with long-term potential to reach around 100 mtpa.

Jefferies observed that market reception to Cheniere’s balanced approach has been positive, and the firm will be looking for "incremental signposts going forward" as the company works to achieve these strategic objectives.

In other recent news, Cheniere Energy has made significant strides in its production and expansion plans. The company announced the final investment decision for the Corpus Christi Midscale Trains 8 & 9 and Debottlenecking Project, which will add approximately 5 million tonnes per annum of liquefied natural gas capacity. This expansion will increase Cheniere’s total production capacity by more than 10% by 2028. UBS reiterated its buy rating on Cheniere Energy, highlighting the company’s increased production guidance and the potential for positive earnings revisions. The firm also noted Cheniere’s ongoing share repurchase program and dividend increase as favorable for shareholders.

Additionally, RBC Capital maintained its Outperform rating on Cheniere Energy, emphasizing the company’s strong position in the U.S. liquefied natural gas export market and its robust financial setup. The company’s expansion at the Sabine Pass Liquefaction facility and the Corpus Christi Stage 3 project are seen as key drivers for future growth. Bernstein also raised its price target for Cheniere Energy stock, reflecting a positive outlook on the global LNG market. These developments suggest that Cheniere Energy is well-positioned for continued growth and shareholder returns.

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