BTIG Maintains Buy On Cheniere Energy Following New EDP Contract


BTIG analyst William Frohnhoefer maintained a Buy rating on Cheniere Energy (NYSE:LNG) with a price target of $100, as the company announced a new LNG offtake contract with EDP Energias de Portugal.

Frohnhoefer noted, “This new contract demonstrates what should have been obvious before: incumbent utilities do not supply themselves in the spot market if they want to remain solvent.” The analyst  continued, “The new contract represents approximately 30% of the necessary contracting numerically, and in terms of sentiment it shows that the global LNG market is still open for business – at least if you are one of the world’s lowest cost providers. The price of the contract is also very important: we believe that the 2.7mtpa figure for CCLNG is premised on that $3.50/mmbtu level.”

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 39.1% and a 61.5% success rate. Frohnhoefer has a 38.1% average return when recommending LNG, and is ranked #306 out of 3420 analysts.

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