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On Monday, UBS reiterated its Buy rating on Cheniere Energy (NYSE:LNG) shares, maintaining a price target of $277.00. The target represents significant upside potential from the current price of $200.74, despite the stock's recent 14.76% decline over the past week. In his assessment, the UBS analyst pointed to a predicted increase in the company's first-quarter earnings before interest, taxes, depreciation, and amortization (EBITDA), forecasting $1,641 million compared to $1,577 million in the previous quarter. This anticipated rise is attributed to the traditionally robust first quarter, reduced operational expenses, and the advantageous impact of higher Henry Hub natural gas prices. According to InvestingPro, Cheniere maintains a GREAT financial health score of 3.53, suggesting strong operational fundamentals.
The analyst's first-quarter EBITDA estimate slightly surpasses the consensus figure of $1,632 million. Furthermore, the projected capital expenditures for the quarter stand at $500 million, a decrease from $569 million in the fourth quarter of 2024. Looking ahead to the full year of 2025, UBS anticipates that Cheniere Energy will achieve a total EBITDA of $6,932 million, which aligns with the upper end of the company's guidance range of $6.5 billion to $7.0 billion. The company's last twelve months EBITDA stands at $7.307 billion, demonstrating consistent operational performance. Investors seeking deeper insights can access comprehensive financial metrics and additional ProTips through InvestingPro's detailed research reports.
The analyst also noted the progress of the Corpus Christi Liquefaction (CCL) Stage 3 Train 1, which is ahead of schedule. However, the financial benefits of this development are expected to be reflected in the company's earnings for the second quarter of 2025. In addition to these projections, the analyst expects that Cheniere Energy will undertake share buybacks amounting to $350 million within the quarter.
Cheniere Energy, a leading liquefied natural gas (LNG) company, has been navigating the dynamic energy market, and UBS's continued confidence in the stock underscores the firm's positive outlook on the company's financial performance and strategic initiatives.
In other recent news, Cheniere Energy has completed the commissioning phase and substantial completion of Train 1, which is expected to positively impact the company's financial results. UBS analysts have maintained a Buy rating with a $277 price target, emphasizing the potential uplift to Cheniere's 2025 guidance. Additionally, Mizuho (NYSE:MFG) Securities raised its price target to $254, highlighting the company's aggressive permitting strategy for future growth. Cheniere's Corpus Christi LNG plant expansion has received approval from US regulators, allowing for the construction of production trains 8 and 9. Fitch Ratings upgraded Cheniere Energy and Cheniere Energy Partners (NYSE:CQP) to 'BBB', reflecting improved leverage expectations and strong cash flow from long-term contracts. Stifel analysts also raised their price target to $255, despite an earnings miss due to lower-than-expected revenues, citing potential growth driven by regulatory opportunities and organic cash flow. These developments underscore Cheniere Energy's strategic focus on expanding its production capacity and enhancing its financial outlook.
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