Rating Agencies Upgrade Cheniere Energy, Inc. (NYSEMKT:LNG) To Overweight


Dallas, Texas 01/08/2014 (FINANCIALSTRENDS) – Cheniere Energy, Inc. (NYSEMKT:LNG), the $10.8 billion market capped oil and gas pipeline provider based out of Houston has posted a impressive 4.4 percent increase in its valuation during trading on January 7. This follows impressive rating upgrades provided by rating agencies to the stock of this energy provider.

The latest rating was provided by Goldman Sachs analyst on January 7. They initiated the coverage for the stock with a Buy rating and have based this opinion on the improved prospects of this firm with the commencement of two new projects to process liquid natural gas in its Sabine Pass expansion and Corpus Christi which are both in Texas.

Steve Sherowski the lead analyst who authored this note for Goldman has been quoted as saying, “We believe Cheniere (particularly its brownfield Sabine Pass terminal) has a construction cost advantage relative to other new-build liquid natural gas proposals given its ability to leverage its re-gas and existing midstream infrastructure. With 90 percent of its capacity contracted, we believe this project offers investors high cash flow visibility with potential upside from marketing volumes.” The note goes on to advise its investors that the in progress Sabine Pass project is currently close to two years in front of its competition. The price target set by Goldman Sachs for Cheniere Energy, Inc. (NYSEMKT:LNG) over the next 12 months time frame is $53.

Goldman’s coverage commenced on the same that Barclays reiterated its bullishness about the stock through its Overweight rating on January 7. It has upped the target price of the stock from its previous $39 to $65 over the next 12 months.

Thanks to these positive evaluations from the analyst community, the share of Cheniere Energy, Inc. (NYSEMKT:LNG) ended the day’s trading yesterday at $45.2 per share just 2.5 percent shy of its 52 week high  price point.