CQP - Cheniere Energy Partners raised to Buy at UBS after lagging peers

2023-07-19 14:28:20 ET

Cheniere Energy Partners ( NYSE: CQP ) +2.4% in Wednesday's trading as UBS upgrades the stock to Buy from Neutral with a $57 price target, noting the company is one of the biggest laggards on the Alerian MLP Index.

UBS analyst Brian Reynolds said he sees sentiment on liquefied natural gas improving on global natural gas supply and demand fundamentals, cash volatility decreases as LNG is 95% contracted in 2024, and investors begin to consider and value future growth opportunities at the Sabine Pass Liquefaction Expansion Project.

Reynolds views Cheniere Partners' ( CQP ) current valuation at an attractive entry point "given recent peer transactions that have valued strategic/ contracted LNG assets at 10.5x-12x (vs. CQP at ~9.5x), stable cash flows contracted with limited commodity exposure, and future growth at Sabine Pass could imply $16 in upside option value."

More on Cheniere Energy Partners:

• Financial and valuation comparison to sector peers
• Analysis: Cheniere Energy Partners: Growing Distributions And Unique Global Exposure
• Stock price return: Down 8.5% YTD, up 12% in the past 12 months

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