UPDATE: Credit Suisse Reiterates on Cheniere Energy Partners LP on Model Update
In a report published Thursday, Credit Suisse analyst Abhiram Rajendran reiterated an Outperform rating on Cheniere Energy Partners LP (NYSE: CQP), but lowered the price target from $39.00 to $37.00.
In the report, Credit Suisse noted, “We continue to believe CQP presents a solid opportunity for returns, with roughly a 30% total return outlook to our slightly lowered TP of $37 (after revising some model assumptions) although this is unlikely to be realized over the next 12 months so requires some investor patience to pan out (which could be rewarded with further upside if the Corpus Christi and SPL expansion projects both go through and assuming the former is dropped down from LNG—we are currently modeling a 95% probability for Corpus and 75% probability for the SPL expansion in our TP).
"Despite taking up our probability weighting for Corpus, our TP comes down because we made updates to our assumptions on the marketing business for Corpus & SPL Trains 5-6 where LNG benefits to a much greater proportion (at the expense of CQP).”
Cheniere Energy Partners LP closed on Wednesday at $30.27.
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