Ameet Thakkar, an analyst from BMO Capital, has initiated a new Buy rating on Cheniere Energy (LNG).
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Ameet Thakkar has given his Buy rating due to a combination of factors that highlight Cheniere Energy’s strong position in the LNG market. The company is recognized as the largest U.S. liquefied natural gas operator and the second largest globally, which positions it well as the U.S. becomes a leading source of LNG supply. Cheniere’s operations are underpinned by long-term take-or-pay contracts, providing exceptional earnings visibility and downside protection, while still allowing for potential upside from favorable short-term LNG price fluctuations.
Cheniere has moved beyond its rapid growth phase and now benefits from a substantial base of fee-based liquefaction contracts. The company’s strategic expansions, such as the CCL midscale 8 & 9 projects, are expected to significantly boost EBITDA. Additionally, Cheniere’s strong cash flow generation supports shareholder returns through dividends and share repurchases. Despite these strengths, the stock trades at a notable discount to the S&P 500 and its peers, making it an attractive investment opportunity according to Thakkar.
According to TipRanks, Thakkar is an analyst with an average return of -4.7% and a 47.62% success rate. Thakkar covers the Technology sector, focusing on stocks such as Enphase Energy, First Solar, and SolarEdge Technologies.