Frohnhoefer noted, “Current wisdom tells us LNG buyers are full up, and lower Brent prices mean trading margins have disappeared. Last year traders squeezed juicy arbitrage from cargoes resold in distant basins, this year that spread has almost entirely dried up. While we don’t think Cheniere shareholders even see full value for the long term contracts in today’s share price, we think the market sees Cheniere’s trading portfolio as a burden, not a benefit. The market’s view may be hasty.”
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 9.7% and a 39.5% success rate. Frohnhoefer has a 2.4% average return when recommending LNG, and is ranked #979 out of 3740 analysts.
Out of the 4 analysts polled by TipRanks, 3 rate Cheniere Energy Inc. stock a Buy, while 1 rates the stock a Hold. With a return potential of 38%, the stock’s consensus target price stands at $88.75.