CQP - Cheniere Partners downgraded at UBS as growth story priced in
Cheniere Energy Partners (CQP +1.3%) pops higher into the close despite getting a downgrade at UBS to Neutral from Buy with a $50 price target, citing valuation after a 20% rally over the last six weeks, as the global natural gas market has moved from structurally oversupplied to structurally undersupplied due to global underinvestment and geopolitical tensions. UBS analyst Shneur Gershuni sees CQP's long-term fixed contract portfolio, limited cash flow volatility and Q1 in-service of its last liquefaction train at Sabine Pass as priced in at this time. While Gershuni still sees green shoots across the U.S. liquefied natural gas export market, he isolates CQP as a fully converted brownfield liquefaction facility that has limited upside to global LNG pricing, with 90% of its portfolio fixed to long-term contracts and the remaining capacity contracted with its Cheniere Energy Inc. parent. Goldman Sachs analysts also recently downgraded Cheniere Partners, seeing the
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Cheniere Partners downgraded at UBS as growth story priced in