UBS reiterates buy rating on Cheniere Energy stock amid production boost

Published 25/06/2025, 16:04
UBS reiterates buy rating on Cheniere Energy stock amid production boost

Investing.com - UBS maintained its buy rating and $277.00 price target on Cheniere Energy (NYSE:LNG), a $52.5 billion market cap energy company trading at $236.99, on Tuesday. According to InvestingPro data, the company maintains a "GOOD" financial health score, with analysts setting price targets between $231 and $282.

The firm highlighted Cheniere’s approximately 6 MTPA (million tonnes per annum) increase in run rate production guidance, which UBS expects will drive upward revisions to earnings forecasts.

UBS also viewed Cheniere’s 11% dividend increase positively, noting the company is likely to continue returning cash to shareholders through its ongoing buyback program.

The energy company still has approximately $3.5 billion remaining under its share repurchase authorization, which originally targeted $4 billion in buybacks by 2027, though UBS expects Cheniere to complete the authorized repurchases "well ahead of the timeline."

UBS anticipates Cheniere’s next project to reach Final Investment Decision (FID) will be the Sabine Pass Expansion, which includes trains 7, 8, and 9 at the liquefied natural gas facility.

In other recent news, Cheniere Energy announced a significant expansion of its Corpus Christi LNG capacity by 5 million tonnes per annum, with the project set to increase total production capacity to over 60 million tonnes per annum by 2028. The company plans to increase its annualized dividend by more than 10% from $2.00 to $2.22 per common share for the third quarter of 2025, pending board approval. UBS reiterated its buy rating on Cheniere Energy, emphasizing the company’s expansion plans and shareholder return strategy, with a price target of $277.00. Bernstein also raised its price target for Cheniere Energy to $266.00, maintaining an Outperform rating, citing positive outlooks on the global LNG market. Additionally, RBC Capital reaffirmed its Outperform rating, highlighting Cheniere’s strong position in the U.S. LNG export market and its robust financial setup, which supports significant cash returns to shareholders. In a strategic move, Cheniere Energy secured a 15-year agreement with a Canadian firm to supply 140,000 MMBtu of natural gas daily starting in 2030, contingent upon the final investment decision on the Sabine Pass Liquefaction Expansion Project. This project is expected to increase production capacity by up to 20 million tonnes per annum, aligning with Cheniere’s strategy to meet growing international demand for natural gas.

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