Cheniere Energy Partners upgraded to Hold from Sell at Stifel

Stifel upgraded Cheniere Energy Partners to Hold from Sell with a price target of $50, down from $53. Given the fall in unit price since the firm’s downgrade in November, the firm is upgrading its rating to Hold, arguing that the limited downside risk no longer justifies a Sell rating. The partnership took down its annual distribution of $4.13/unit in 2023 to $3.25/unit at the midpoint in 2024 as it starts to build cash to fund the equity component of the Sabine Pass expansion, though given the Sabine Pass expansion won’t reach FID until 2026 at the earliest and won’t be able to start production until 2030 or later given the current regulatory uncertainty, the firm says that “while there will likely be eventual growth in distributions, it won’t be for a long time.”