Cheniere Energy Partners upgraded to Overweight from Equal Weight at Barclays
Barclays upgraded Cheniere Energy Partners based on long-term contracts, scarcity value of its U.S. export gas license, and valuation. Price target remains $25
Barclays upgraded CQP to Overweight from Equal Weight. The firm says, at present Cheniere is the only company in the US with a license to export gas to both free trade and non free trade countries. While they expect a few more licenses to be issued, they believe the number of new licenses are unlikely to be anywhere close to demand for the same. they note that at present there are 14 other projects which have applied for a license to export to non-FTA countries for roughly a third of US marketed production. As a result, they believe Cheniere's non-FTA license is likely to have meaningful scarcity value once the next set of licenses are issued.