Goldman Sachs Group, Inc. reiterates a "buy" rating on Cheniere Energy (LNG.US) and lowers its target price due to weaker Q3 performance.

Goldman Sachs Group, Inc. reiterated its "buy" rating on liquefied natural gas producer Cheniere Energy (LNG.US), but lowered its target price from $2780 to $275. This target price reduction was in response to the company's quarterly performance being described as "soft" by the investment bank due to issues with the quality of raw materials. Cheniere Energy reported third-quarter revenue of $4.4 billion, below the market expectation of $4.89 billion; earnings per share were $4.75, exceeding the market expectation of $2.92. With mixed performance in the quarter, the management reiterated the full-year EBITDA guidance, contrary to market expectations of a possible downgrade. In reiterating its "buy" rating, Goldman Sachs Group, Inc. also emphasized Cheniere Energy's commitment to shareholder value. The company repurchased $1 billion worth of stock in the quarter and hinted at continuing high-level buyback activities. Additionally, the bank believes the company's EBITDA outlook implies significant value. Cheniere Energy is a leading U.S. liquefied natural gas producer and exporter, supplying the global energy market. The company operates two large liquefied natural gas liquefaction and export facilities along the Gulf Coast: the Sabine Pass facility in Louisiana and the Corpus Christi facility in Texas.