UPDATE: Credit Suisse Reinstates Coverage on Cheniere Energy Partners on Very Solid Long-Term Return Proposition

In a report published Tuesday, Credit Suisse analyst Abhiram Rajendran reinstated coverage on Cheniere Energy Partners CQP with an Outperform rating and $38.00 price target. In the report, Credit Suisse noted, “We believe CQP presents a solid opportunity for returns, with more than a 40% total return outlook to our TP although this may not all be realized over the next 12 months. Further, we are using conservative assumptions for both SPL Trains 5-6 (vs mgmt's guidance for cash flows) as well as Corpus Christi. ~$2 of further upside exists if they hit higher end of cash flow target range for Trains 5/6 and fully market Corpus Christi volumes. Our target price of $38 bakes in a 75% probability of the expansion of Sabine Pass and the Corpus Christi project (eventual drop)—greater clarity on these projects would support even further upside (~$3).” Cheniere Energy Partners closed on Tuesday at $28.31.