Goldman Sachs Cuts Cheniere Energy, Inc. (LNG) Price Target on Soft Q3 Results but Asserts Buy Rating

LNG +1.30%

Cheniere Energy Inc. (NYSE:LNG) is an affordable blue-chip stock to buy. On November 3, Goldman Sachs reiterated a Buy rating on the stock but cut the price target to $275 from $2780. The price target cut is in response to what the investment bank terms “soft” quarterly results due to feedgas quality challenges.

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In the third quarter, Chenier Energy generated $4.44 billion in revenue below $4.89 billion expected. On the other hand, earnings per share came in at $4.75, better than $2.92 expected. Amid mixed third-quarter results, management reiterated full-year EBITDA guidance, contrary to expectations of a potential downside revision.

Goldman Sachs also reiterated its Buy stance on Cheniere, reiterating its commitment to shareholder value. The company repurchased $1 billion in the quarter and pointed to continued high levels of buyback activity. In addition, the investment bank sees substantial value in the company’s EBITDA profile.

Cheniere Energy, Inc. (NYSE:LNG) is a leading producer and exporter of liquefied natural gas (LNG) in the United States, providing energy to markets worldwide. It operates two extensive LNG liquefaction and export facilities on the US Gulf Coast: the Sabine Pass facility in Louisiana and the Corpus Christi facility in Texas.

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Disclosure: None. This article is originally published at Insider Monkey.