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On Wednesday, Goldman Sachs analyst John Mackay revised the price target for Venture Global shares, listed on NYSE under the ticker (NYSE:VG), reducing it to $17.50 from the previous $20.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at $10.72, with analyst targets ranging from $11 to $20, suggesting potential upside. The company’s market capitalization stands at $25.94 billion. The adjustment comes after Venture Global reported first-quarter 2025 results that aligned closely with expectations, with EBITDA slightly surpassing Goldman Sachs and consensus estimates by 2% and 1%, respectively. The revision follows the company’s operational update in April.
Venture Global lowered its EBITDA guidance for 2025 to a range of $6.4 billion to $6.8 billion from the earlier forecast of $6.8 billion to $7.4 billion. This change was attributed to a decline in the global gas spread forwards, though it was partially mitigated by the company’s volume outperformance. InvestingPro analysis reveals the company’s last twelve months EBITDA at $2.085 billion, with a notably high EV/EBITDA multiple of 26.58x. InvestingPro subscribers can access 16 additional key insights about Venture Global’s valuation and financial health. Goldman Sachs and consensus EBITDA estimates are now at the lower end of this updated range, at $6.44 billion and $6.41 billion, respectively.
Despite the lowered EBITDA outlook, the analyst highlighted positive expectations surrounding near-term contract announcements. The firm believes that new 20-year Sales and Purchase Agreements (SPAs) could address concerns about the company’s growth prospects, customer sentiment, especially in light of ongoing arbitration issues, and funding flexibility. The details of contract rates and the quality of counterparties are seen as crucial factors moving forward.
The report also noted encouraging developments regarding the company’s CP2 facility, citing progress in permitting, with major approvals from FERC and DOE largely secured, preliminary funding arrangements through a $3 billion bridge facility, and new insights into potential tariff impacts, which are estimated to be around 1% of total capital expenditures.
In light of these developments, Goldman Sachs has adjusted its estimates for Venture Global, taking into account the revised global gas price deck, anticipated increases in operational expenses, and slightly reduced long-term global gas spreads. These factors were partially balanced by a stronger belief in the excess capacity at the Plaquemines location. As a result of these considerations, the price target has been set to $17.50, reaffirming the Buy rating on Venture Global shares. InvestingPro data shows the company operates with a significant debt burden of $30.15 billion, while maintaining a "Fair" overall financial health score. For comprehensive analysis, including detailed valuation metrics and future growth prospects, investors can access the full Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Venture Global Inc . reported mixed results for the first quarter. The company’s earnings per share were $0.15, which did not meet analyst expectations of $0.47. However, revenue showed a significant increase, more than doubling year-over-year to reach $2.9 billion. This surge in revenue was attributed to higher sales volumes and prices of liquefied natural gas (LNG). Venture Global exported a record 234 TBtu of LNG in the first quarter, marking a 93% increase from the previous quarter. The company also updated its full-year 2025 guidance, projecting Consolidated Adjusted EBITDA between $6.4 billion and $6.8 billion. Venture Global plans to export 145-150 cargos from its Calcasieu Project and 222-239 cargos from the Plaquemines Project this year. The company is expanding its LNG production and export capabilities to meet the rising global demand for natural gas.
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