Back to top

Image: Bigstock

Cheniere Energy Inc.

Read MoreHide Full Article

We are initiating coverage on Cheniere Energy with a 'Hold' rating. The company – with its first-mover advantage in exporting liquefied natural gas from the U.S. – is primed for significant revenue and earnings growth. Further, Cheniere Energy's long-term contracts protect its future income and lowers exposure to commodity price fluctuations, while offering excellent cash flow visibility. However, setting up natural gas liquefication plants are a costly affair that requires high capital spending. This has translated into a huge debt burden for the company, thereby deteriorating its risk profile. As such, we see limited upside from current levels and take a cautious stance on LNG shares.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Cheniere Energy, Inc. (LNG) - free report >>