In a research report issued today, BTIG analyst William Frohnhoefer maintained a Buy rating on Cheniere Energy, Inc. (NYSEMKT:LNG) with a price target of $100, following yesterday’s presentation at the Company’s Investor/Analyst Day Conference. The current price target implies an upside of 27% from current levels.
Frohnhoefer wrote, “What drew the greatest investor attention was the Ingleside project and its associated connection to a Cheniere-owned condensate splitter. While the outlines are broad, it is a project that – depending on the WTI/Brent spread and the percentage of throughput tolled – could be built at 2-5x EBITDA and then, depending on contract structure, could be dropped down into the MLP at the high splits. This project would be no liquefaction train: it could theoretically be built by 2017 – a meaningful source of cash flow which is likely in few observers’ models (certainly not ours).”
Bottom line, “This year’s Cheniere analyst day brought no shocking new revelations, but many small clarifications that filled in missing details of Cheniere’s longterm strategy. We leave the analyst day just as confident in our recommendations and price targets as we entered it.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst William Frohnhoefer has a total average return of 25.0% and a 65.2% success rate. Frohnhoefer has a 25.9% average return when recommending LNG, and is ranked #435 out of 3571 analysts.