RBC Capital reiterates outperform rating on Cheniere Energy stock

Published 02/06/2025, 12:58
RBC Capital reiterates outperform rating on Cheniere Energy stock

On Monday, RBC Capital analysts reaffirmed their Outperform rating for Cheniere Energy stock (NYSE: NYSE:LNG), maintaining the price target at $281.00. The analysts highlighted Cheniere Energy’s addition to the RBC Global Energy Best Ideas List, citing its strong position in the U.S. liquefied natural gas export market. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts’ targets ranging from $230 to $282.

The analysts noted Cheniere Energy’s highly contracted cash flows and robust balance sheet, which create a defensive setup. This financial strength supports significant cash returns to shareholders through dividends and share buybacks, according to RBC Capital. The company boasts strong fundamentals with an EBITDA of $7.1 billion and has raised its dividend for 4 consecutive years, maintaining a healthy current ratio of 1.19.

Cheniere Energy is seen as a leading beneficiary of the growth in U.S. liquefied natural gas exports. The company’s long-term growth prospects are bolstered by its Corpus Christi Stage 3 project and potential expansion at its Sabine Pass Liquefaction (SPL) facility.

RBC Capital’s continued confidence in Cheniere Energy reflects the firm’s positive outlook on the company’s strategic position and future growth opportunities in the energy sector.

In other recent news, Cheniere Energy reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $1.57, which missed the forecast of $2.72. However, the company exceeded revenue expectations by reporting $5.44 billion against an anticipated $4.69 billion. The company also announced a significant 15-year agreement with a Canadian firm to secure a natural gas supply starting in 2030, contingent on a final investment decision for its Sabine Pass Liquefaction Expansion Project. This project aims to increase production capacity by up to 20 million tonnes per annum. Additionally, Cheniere Energy has made substantial progress in infrastructure projects, including the Corpus Christi Stage Three, and has reaffirmed its 2025 guidance, projecting a consolidated adjusted EBITDA of $6.5 to $7.0 billion. The company remains focused on shareholder returns and infrastructure expansion, with over 90% of its LNG volumes sold under long-term agreements. While the earnings fell short of expectations, Cheniere’s strategic moves and revenue performance highlight its ongoing efforts to strengthen its position in the LNG market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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