Stifel raises Cheniere Energy target to $255 on growth prospects

On Friday, Stifel analysts, led by Benjamin J. Nolan, increased the price target for Cheniere Energy (NYSE:LNG) shares to $255 from the previous target of $237, while reaffirming a Buy rating on the stock. Currently trading at $226.92, the company commands a market capitalization of $50.8 billion. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, though it has delivered strong returns with a 25% gain over the past six months. The adjustment comes despite the company reporting earnings that fell short of both Stifel’s and the consensus estimates among analysts. The earnings miss was attributed primarily to lower-than-expected revenues, resulting largely from reduced volumes. With current revenue at $15.7 billion and an EBITDA of $7.3 billion, InvestingPro data shows the company maintains a healthy P/E ratio of 14.39 and boasts a "GREAT" overall financial health score.

Cheniere Energy’s midpoint of 2025 adjusted EBITDA guidance also did not meet the consensus expectations. Nevertheless, Nolan noted that, contingent on LNG price movements, there remains potential for the company to achieve the upper end of its guidance range.

The company is actively pursuing growth, leveraging the regulatory environment shaped by the Trump administration to advance its projects. Cheniere Energy is on track to make a final investment decision (FID) on Corpus Christi Train 8 & 9 in 2025 and on Sabine Pass Stage 5 in 2026. According to Nolan, the company’s organic cash flow should be sufficient to ensure these projects face minimal hurdles in obtaining the necessary permits, contracts, and construction approvals.

The analyst’s commentary reflects optimism about Cheniere Energy’s growth trajectory, despite the recent earnings miss. Stifel’s revised price target suggests confidence in the company’s ability to capitalize on current regulatory opportunities and generate the organic cash flow needed to support its expansion plans. For deeper insights into Cheniere Energy’s financial health and growth prospects, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company’s fundamentals and growth metrics among 1,400+ top US stocks.

In other recent news, Cheniere Energy reported fourth-quarter earnings that exceeded analyst expectations, posting adjusted earnings per share of $4.33 compared to the consensus estimate of $2.73. The company’s revenue for the quarter reached $4.44 billion, surpassing the estimated $4.1 billion and marking a 1% increase year-over-year. For the full year 2024, Cheniere achieved revenues of $15.7 billion and net income of $3.3 billion, along with a Consolidated Adjusted EBITDA of $6.2 billion and Distributable Cash Flow of $3.7 billion. Looking forward, Cheniere introduced guidance for 2025, projecting Consolidated Adjusted EBITDA between $6.5 billion and $7.0 billion, and Distributable Cash Flow between $4.1 billion and $4.6 billion.

Additionally, Jefferies maintained its Buy rating on Cheniere Energy with a price target of $303, despite the company’s fourth-quarter EBITDA of approximately $1,577 million falling short of both Jefferies’ and consensus estimates. The shortfall was attributed to higher-than-expected operating and maintenance expenses. Jefferies remains optimistic about Cheniere’s financial outlook, particularly with the first train of the Corpus Christi Liquefaction project now operational. Cheniere also announced the production of the first LNG cargo from its Corpus Christi Stage 3 Project, with substantial completion expected by the end of Q1 2025. During the fourth quarter, the company repurchased about 1.5 million shares for $281 million and declared a quarterly dividend of $0.500 per share.

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