Blackstone shares gain for a second straight session on Monday, asset manager sells 40% of its stake in Cheniere Energy Partner LP to Brookfield

Blackstone Group LP (BX) announced on Monday plans to sell 40% of its stake in Cheniere Energy Inc’s limited partnership to Brookfield Infrastructure.

A SEC filing by Blackstone did not state what the value of the agreement was.

On the other hand, a report by Bloomberg, citing sources with knowledge of the matter, said the deal was valued at about $7 billion. The sale of the stake will generate $5 billion for Blackstone, the report also stated.

Blackstone shares closed higher for a second consecutive trading session in New York on Monday. The stock went up 0.62% ($0.33) to $53.30, after touching an intraday high at $53.60, or a price level not seen since August 20th ($53.75).

Shares of The Blackstone Group LP have retreated 4.72% so far during the current year, following an 87.66% gain in 2019.

The largest liquefied natural gas producer in the United States, Cheniere Energy, holds a 48.6% stake in Cheniere Energy Partner LP, while Blackstone CQP Holdco LP and the public own the remaining part of the shares.

Demand for liquefied natural gas has begun to recover after exports were hampered and cargoes suspended due to the coronavirus pandemic.

Analyst stock price forecast and recommendation

According to CNN Money, the 14 analysts, offering 12-month forecasts regarding The Blackstone Group LP’s stock price, have a median target of $62.50, with a high estimate of $70.00 and a low estimate of $49.00. The median estimate represents a 17.26% upside compared to the closing price of $53.30 on August 24th.

The same media also reported that at least 12 out of 18 surveyed investment analysts had rated The Blackstone Group LP’s stock as “Buy”, while 6 – as “Hold”.

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