Venture Global Poised to Benefit From Higher Global LNG prices, RBC Says

MT Newswires Live03-13 23:24

Venture Global (VG) could benefit from higher global liquefied natural gas prices, which would drive better-than-expected financial results, RBC Capital Markets said in a Thursday note.

According to the analysts, the Middle East conflict could be a tailwind for the company's open capacity given the impeded cargoes through the Strait of Hormuz and closure of Qatar's Ras Laffan facility.

The brokerage said it now expects 2026 and 2027 adjusted EBITDA of $6.83 billion and $5.01 billion, respectively, from $4.73 billion and $3.63 billion earlier.

The stock is highly correlated to Title Transfer Facility prices, which are up around 50% since the beginning of the conflict. Further volatility in TTF prices and the stock price could persist as the conflict continues, according to the note.

The brokerage said it reiterated its outperform rating on the stock and boosted its price target to $14 per share from $11.

Price: 13.14, Change: +0.37, Percent Change: +2.90

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment