Citigroup Raises PT on Cheniere Energy to $19

Citigroup has published a research report on Cheniere Energy

and has raised the price target from $14 to $19. In the report, Citigroup writes, "[Monday], Cheniere (through its subsidiary), announced it entered into a sale and purchase agreement (

) with a subsidiary of Gas Natural Fenosa (GNF), the largest integrated gas and power company in Spain. GNF agreed to take 3.5 mtpa (~0.5 Bcf/d) of LNG for 20 years for a fixed fee of $2.49 MMbtu. This is higher than the BG deal at $2.25 MMbtu. The first shipment will begin upon the second train being built, and will likely become operational in the second half of 2016. The agreement is contingent on regulatory license approval and securing necessary financing for construction." Citigroup maintains its Buy rating on Cheniere Energy, which closed yesterday at $11.34.