Cheniere Energy started with a Buy at Deutsche Bank


Deutsche Bank initiates coverage of Cheniere Energy (LNG +0.4%) with a Buy rating and $39 target price and related MLP Cheniere Energy Partners (CQP +0.1%) with a Hold and $30 target.

LNG has earned the status as first mover and bellwether for the industry by achieving approvals and contracts and beginning construction earlier than others, the firm says; long-term contracts underpin the ability to achieve financing, generate cash flows and provide returns to shareholders over time.

DB's macro fundamental analysis of the worldwide liquefied natural gas business in general and the U.S. liquefaction outlook in particular shows numerous favorable trends.

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Comments (9)
  • Tda
    , contributor
    Comments (125) | Send Message
     
    I had LNG awhile back and sold it at a small profit. The company still hasn't made a dime, but it has things in place to do so. Nevertheless, we still don't know "when." Does anyone?
    27 Sep 2013, 01:12 PM Reply Like
  • Snapcap
    , contributor
    Comments (191) | Send Message
     
    LNG is a buy rating; CQP is a hold rating. Poor headline.
    27 Sep 2013, 02:40 PM Reply Like
  • blooney
    , contributor
    Comments (4) | Send Message
     
    soon, very soon. watch lineham creek well.
    27 Sep 2013, 05:05 PM Reply Like
  • James Hanshaw
    , contributor
    Comments (4044) | Send Message
     
    Deutsche Bank comes in with a buy rating on LNG. I am pleased I did not wait for Deutsche Bank when I gave LNG a buy rating and bought at $2.87. I still have it - my first ten bagger - and will keep it for a while yet. I hope a few more big analysts will finally wake up to LNG.
    28 Sep 2013, 11:13 AM Reply Like
  • Tda
    , contributor
    Comments (125) | Send Message
     
    That's good for you, James H. What puzzles me is that LNG's current price is $33.58 and the stock has a negative EPS, - 2.22, which I have to believe is an honest number, which makes the stock quite overvalued according this fundamental metric. Even with a price correction of 75%, you'd still come out ahead, but the rest of us would take a hosing even with a small correction.
    I wonder if Deutsche Bank knows about our pending government shutdown, even the rumor of one, and how it may affect the U.S. market.
    28 Sep 2013, 03:02 PM Reply Like
  • James Hanshaw
    , contributor
    Comments (4044) | Send Message
     
    I do not know Tda. I have yet to see any analyst - and none of the other big firms/banks seem to have heard of the company yet - suggest selling Cheniere and most say buy. I have long reckoned on $40 per share but that was not very scientifically based merely a reckoning that if it was worth that much when they planned to import LNG, before US natural gas prices plunged, then it might be again when they changed their plans to export LNG instead. So far that has proved correct.

     

    I think the whole world knows of the possible government shut down and must wonder how long the US can remain the world's top economy with such dangerous, dogmatic infants playing games with our lives in Washington. Meanwhile the Chinese are not hesitating, they are continuing to grow their economy at a very rapid rate.
    29 Sep 2013, 12:09 PM Reply Like
  • James Hanshaw
    , contributor
    Comments (4044) | Send Message
     
    A follow up on my above comment: Credit Suisse and BTIG have also recently analysed LNG and came out positive.
    29 Sep 2013, 12:17 PM Reply Like
  • Tda
    , contributor
    Comments (125) | Send Message
     
    Well, I might buy it again on a dip. I think a dip is coming in less than two weeks.
    29 Sep 2013, 08:07 PM Reply Like
  • James Hanshaw
    , contributor
    Comments (4044) | Send Message
     
    Best of luck. I shall hold on and ride out the dips.
    30 Sep 2013, 11:39 AM Reply Like
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