Opinions Bill Baruch, Founder, Blue Line Capital
Cheniere EnergyLNGBUYJun 21, 2024
Stock price when the opinion was issued
As of Jun 03, 2026. Market Open.
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The company in the trans-shipment LNG. Big beneficiary of global demand. Pretty good geopolitical tailwind, given what's going on. A growth business, as we have lots of nat gas in NA.
Very capital intensive, and they're investing a lot. Increased cost of capital from higher interest rates is potential headwind. He likes the business. Settlement in the Strait could result in a negative psychological impact. Technically behaving pretty well -- above 50-day MA, which is rising.
Target was raised, but you can't rely on natural gas production from Qatar given too much hostility there. Therefore, countries will look to the US for nat gas, which benefits LNG. Thought up 21% this month, he won't take profits. More upside to come, because LNG is adding capacity in years to come.
Jim Lebenthal
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Premium contentOur PAST TOP PICK with LNG has triggered its stop at $215. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 33%, when combined with our previous guidance.
Premium contentPremium contentPremium contentPremium contentPremium contentWe again reiterate LNG as a TOP PICK. Cash reserves are growing, which is allowing the company to allocate another $4 billion towards capital expansions while receiving investment-grade credit status. Its Corpus Christi Stage 3 project will see first LNG later this year. It trades at 18x earnings and supports a robust 78% ROE. We suggest trailing up the stop (from $140) to $153, looking to achieve $198 -- upside potential of 19%. Yield 1.0%
(Analysts’ price target is $98.69)Premium contentWe reiterate this builder and operator of liquified natural gas facilities as a TOP PICK. We like that cash reserves continue to grow, while debt is reduced and shares bought back. It trades at 18x earnings. With low domestic natural gas prices in the US, this will make for good demand to export in the near term. We continue to recommend a stop at $140, looking to achieve $201 -- upside potential of 25%. Yield
(Analysts’ price target is $200.89)Premium contentAfter recently reported earnings beat analyst expectations, we select LNG as a TOP PICK. The developer of LNG infrastructure trades at 18x earnings and supports a monsterous 200% ROE. We like that cash reserves are growing, while debt is retired and shares bought back. Its modest dividend is backed by a payout ratio under 10% of cash flow. We recommend setting a stop-loss at $140, looking to achieve $200 — upside potential of 26%. Yield 1.1%
(Analysts’ price target is $200.24)
Is adding to it. They're increasing share buybacks and dividends.