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Shares of LNG have advanced 46.2% in price year-to-date to close its last trading session at $87.74. Wall Street analysts expect the stock to hit $107.09 soon, which indicates a potential 22.1% upside from its last closing price.
According to Cheniere Energy CEO Jack Fusco, “as the economies began to ramp back up, and countries and companies worldwide decided natural gas was the fuel of choice for clean energy transmission, the demand has just skyrocketed.” He added that LNG has sold 90% of its production for the next 20 years. So, the company’s declining inventories could pose a major challenge for the its growth in the coming months. This, along with its stretched valuation, makes the stock’s near-term prospects uncertain.
