Assessing Cheniere Energy (LNG) Valuation After Analyst Support and Growing Global LNG Demand

Cheniere Energy (LNG) is back in the spotlight after Wells Fargo reiterated its buy rating, and Jim Cramer once again praised the company’s yield and role as the largest United States LNG exporter.

See our latest analysis for Cheniere Energy.

Those upbeat calls land against a choppy backdrop, with Cheniere’s 1 month share price return of about minus 9 percent and 3 month share price return of roughly minus 18 percent following Q3 earnings. Even so, its 5 year total shareholder return of more than 240 percent shows the longer term thesis has still rewarded patient investors. This suggests near term sentiment has cooled while the structural LNG story remains intact.

If this kind of LNG driven story has your attention, it could be a good moment to explore other energy linked opportunities through aerospace and defense stocks and see what else fits your outlook.

With shares down double digits in recent months but analysts still seeing hefty upside to price targets, the real question now is whether Cheniere is quietly undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative: 29.9% Undervalued

Compared to Cheniere Energy’s last close of $189.76, the most followed narrative sees materially higher long term value, built on capacity expansion and contracted cash flows.

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

Read the complete narrative.

Want to see the math behind that optimism? The narrative leans on rising revenues, shifting profit margins, and a richer future earnings multiple. Curious which assumptions really move the fair value dial?

Result: Fair Value of $270.67 (UNDERVALUED)

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

However, this hinges on LNG demand holding up, as a potential global supply glut and faster decarbonization efforts could compress margins and delay returns.

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

Build Your Own Cheniere Energy Narrative

If you see the story differently or want to dig into the numbers yourself, you can craft a personalized view in just a few minutes, starting with Do it your way.

A great starting point for your Cheniere Energy research is our analysis highlighting 4 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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