Cheniere Energy Partners (CQP – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Benjamin Nolan from Stifel Nicolaus downgraded the rating on the stock to a Sell and gave it a $51.00 price target.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Benjamin Nolan has given his Sell rating due to a combination of factors affecting Cheniere Energy Partners’ future prospects. One primary reason is the perception that the positive sentiment following the election has already been factored into the current stock price, making the shares potentially overvalued. The anticipated expansion of Sabine Pass, while promising, is not expected to contribute significantly to earnings until at least 2030, leaving current distributions relatively flat in the meantime.
Moreover, recent earnings reported by CQP fell short of expectations, primarily due to lower shipping volumes which impacted EBITDA negatively. Additionally, the contractual structure capping marketing margins limits the potential upside for CQP, even as capacity at Sabine Pass increases. With cash flows and distributions under pressure, and given the current yield, Nolan anticipates a potential downside should LNG prices decline, justifying the downgrade to a Sell rating with a target price of $51.
Nolan covers the Industrials sector, focusing on stocks such as Canadian National Railway, Canadian Pacific Kansas City, and Genco Shipping. According to TipRanks, Nolan has an average return of 16.1% and a 61.12% success rate on recommended stocks.