Cheniere Energy (LNG): Evaluating Valuation After Goldman Sachs Highlights Strong Q3 Outlook and Operational Gains – simplywall.st

Cheniere Energy (LNG) shares drew fresh attention after Goldman Sachs reaffirmed its positive outlook and cited expectations for third-quarter results to come in above estimates. The firm highlighted the impact of revenue growth and operational improvements at the company’s major LNG facilities.

See our latest analysis for Cheniere Energy.

Cheniere Energy’s latest buzz from Goldman Sachs comes as its share price holds steady near $222, and momentum has cooled a bit lately. However, investors have still enjoyed a robust 1-year total shareholder return of nearly 23% and a remarkable 5-year total return approaching 383%. News of continued operational gains and revenue growth at key LNG terminals has helped maintain optimism around the company’s long-term prospects, even as recent price moves have been more muted.

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With shares trading close to all-time highs, yet still at a considerable discount to analyst price targets, the question for investors is whether Cheniere Energy remains undervalued or if the market is already pricing in future growth.

Most Popular Narrative: 17.9% Undervalued

Cheniere Energy’s narrative fair value stands at $270.67, notably higher than the latest closing price of $222.22. This signals that the most closely followed outlook sees meaningful upside, with key drivers centering on future projects and production capacity.

Cheniere’s ongoing expansion of LNG production capacity, including the final investment decision and construction of Corpus Christi Midscale Trains 8 & 9 and advancing permitting for future trains, positions the company to capture increasing global demand for LNG. This directly supports upward revisions in long-term revenue and EBITDA as these projects come online.

Read the complete narrative.

Curious how ambitious buildouts and global market shifts factor into this valuation boost? The real story reveals a bold set of financial assumptions and growth projections that could surprise even seasoned investors. Find out how these expectations shape the fair value, and see if you spot the wildcard the market might be missing.

Result: Fair Value of $270.67 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, looming global oversupply and shifting energy policies could pressure LNG prices. This may potentially weaken Cheniere’s long-term growth and margin outlook.

Find out about the key risks to this Cheniere Energy narrative.

Build Your Own Cheniere Energy Narrative

If you think there’s another angle to consider, or you’d rather dive into the data yourself, you can quickly build your own view in just a few minutes. Do it your way.

A great starting point for your Cheniere Energy research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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Source: simplywall.st