TD Cowen Lifts Cheniere Energy Target to $255; 90% Capacity Under Long-Term Contracts
Cheniere Energy’s share price was $219.01, with a trailing P/E of 12.33 and over 90% of its 30 MTPA Sabine Pass capacity secured under investment-grade, take-or-pay agreements. TD Cowen raised its price target by $5 to $255, citing inline FY26 EBITDA guidance and a strong buyback.
1. Bullish Contracted Capacity
Over 90% of Cheniere’s 30 million tonnes per annum Sabine Pass capacity is secured under long-term take-or-pay agreements with investment-grade counterparties, providing predictable cash flows and insulation from spot-market volatility.
2. Financial Metrics & Growth
Shares traded at $219.01 on February 17, reflecting a trailing P/E of 12.33; recent EBITDA growth was driven by improved margins and cost control, while net income fluctuations from non-cash derivatives did not impact strong cash generation.
3. Analyst Upgrade & Outlook
TD Cowen raised its price target from $250 to $255 and maintained a Buy rating, highlighting FY26 EBITDA guidance in line with expectations and a robust share buyback, as management targets leverage near 4.0x while funding the planned Sabine Pass expansion.