Now Is a Great Time to Buy Cheniere Energy: New High Expected

Key Points

• Cheniere Energy is well-positioned to grow and profit from LNG demand as industries go green globally.
• Analyst trends are leading this market to a new high, significant because of the technical setup.
• Technical indications and capital returns suggest this stock could rise by $70 to $80 from critical resistance levels. 

August and Q3 2025 are great times to buy Cheniere Energy NYSE: LNG. The Q2 results and outlook affirmed the bullish forecasts that have been driving the price action all year. The estimates are based on rising LNG demand supported by new infrastructure, compounded by the need for affordable, efficient, greener energy supplies.

The critical takeaway from the release is that business is stronger than expected, profitability is robust, and the guidance improved, news that will likely extend the stock price uptrend to new highs.

The new high is a significant factor for investors and traders. LNG stock has been in a strong uptrend, recently formed a triangle consolidation pattern, and looks set to extend its rally. A break to new highs would confirm the triangle as a continuation signal, potentially the halfway point in a larger rally, and lead this market into another substantial rally.

Based on the technical setup ahead of the report, the market for LNG stock could rise by $70 to $80 in that scenario within a few quarters and up to another $60 over the long term. 

The analysts’ sentiment, a gauge of broader market sentiment, was bullish ahead of the release and will likely strengthen in its wake. The data tracked by MarketBeat reveals coverage increasing, sentiment firming to a Buy, and the consensus price target rising compared to July, the prior quarter, and the preceding year.

At $260, the consensus is sufficient to put this market at a new high, break it out of the trading range, and set it up for a run toward the high-end range. That puts this market near $288, but higher targets are expected to follow. 

Cheniere Blows Past Estimates: Improves Guidance for F2025

Cheniere had a solid quarter in Q2, supported by demand, volume, pricing, and the favorable impact of derivative hedging instruments. The net result is a 42.8% increase in net revenue and a significantly wider margin.

Revenue outpaced the consensus by more than 800 basis points, while GAAP EPS more than doubled. The critical details are that demand, execution, and margin are expected to remain strong through the year’s end, allowing the company to improve its guidance. 

The note details include the adjusted EBITDA and distributable cash flow targets, which were lifted at the low end, tightened in the first case, and lifted and tightened in the second. 

Distributable cash flow is among the reasons why analysts like this stock and will likely improve their price target forecasts in Q3.

The company returns ample capital to its investors, including dividends and share repurchases, and is running with a sub-50% distributable cash flow payout ratio.

This allows the company to reinvest in its growth while paying down debt and improving its balance sheet health. The balance sheet highlights at the end of Q2 include reduced cash, but it is offset by increased assets, reduced debt and total liability, low leverage, and increased equity.

Equity increased by 11%, the share count fell by nearly 3%, and the dividend annualized to 0.85% as of the end of the reporting period. 

Institutional Trends Point to Rising Prices for LNG Stock

The Institutional trends also align with LNG’s stock price outlook. They own more than 87% of the stock and have been buying on balance all year. The volume of activity has declined since Q1, but the balance improved sequentially, rising to a ratio of 4:1 regarding dollar buying and selling volume.

This trend is not expected to end in Q3 but may strengthen due to the profit outlook and capital return.