Cheniere Energy's Q1 2024 Earnings: Strong Buy Rating and Price Target Increase

Stifel Nicolaus's Benjamin Nolan raised their price target on Cheniere Energy (NYSE: LNG) by 2% from $204 to $208 on 2024/05/06. The analyst maintained their Strong Buy rating on the stock.

Cheniere Energy, an energy infrastructure company operating in the liquefied natural gas (LNG) industry, recently reported its first-quarter 2024 earnings on May 3rd. The company's performance in Q1 2024 fell short of expectations, with earnings per share (EPS) of $2.13, missing the Zacks Consensus Estimate of $2.30 and significantly lower than Q1 2023's $6.89. Similarly, revenue came in at $4.3 billion, surpassing the Zacks Consensus Estimate of $4 billion but falling short of Q1 2023's $7.1 billion by 41.8%.

Despite the earnings miss, Stifel Nicolaus analyst Benjamin Nolan considered Cheniere Energy's Q1 2024 results to be "a great quarter." Nolan noted that the company's management maintained its guidance for the fiscal year 2024, leading Stifel Nicolaus to adjust its estimates for FY 2024 downwards. However, the analyst also raised the firm's outlook for FY 2025 due to anticipated improvements in global LNG prices.

Cheniere Energy's adjusted EBITDA for Q1 2024 stood at $1.8 billion, reflecting a 50.7% decline year-over-year. The company reported distributable cash flow (DCF) of $1.16 billion. Looking ahead, management provided guidance for FY 2024, expecting adjusted EBITDA in the range of $5.5 billion to $6 billion and DCF between $2.9 billion and $3.4 billion. President and CEO Jack Fusco expressed confidence in Cheniere Energy's ability to meet these targets, emphasizing the company's focus on operational excellence and continued investment in LNG capacity expansions.

As for the analyst sentiment surrounding Cheniere Energy, 100% of top-rated analysts rate the stock as either a Strong Buy or Buy. Notably, no analysts recommend holding or selling the stock. This positive sentiment likely stems from the company's leading position in the LNG industry and its strong financial performance in previous quarters.

Since the release of Cheniere Energy's Q1 2024 earnings report on May 3rd, the stock price has seen a slight decline of 0.5%. However, when considering the year-over-year performance, the stock is up by 4.8%. It is worth noting that during this period, Cheniere Energy has trailed behind the overall market performance, with the S&P 500 recording a 25.2% increase.

Benjamin Nolan, the Stifel Nicolaus analyst who raised the price target on Cheniere Energy, is ranked in the top 8% of Wall Street analysts by WallStreetZen. With an average return of 10.6% and a win rate of 62%, Nolan specializes in analyzing companies in the Financial Services and Utilities sectors, among others.

Cheniere Energy, Inc., headquartered in Houston, Texas, engages in various LNG-related businesses in the United States. The company owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana, as well as the Corpus Christi LNG terminal near Corpus Christi, Texas. Additionally, Cheniere Energy operates the Creole Trail pipeline, which connects the Sabine Pass LNG terminal with interstate pipelines. The company's involvement in the LNG and natural gas marketing business further contributes to its industry presence.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.