Goldman Sachs reiterates Buy rating on Venture Global stock, citing positive newsflow

Published 15/08/2025, 10:52
Goldman Sachs reiterates Buy rating on Venture Global stock, citing positive newsflow

Investing.com - Goldman Sachs has reiterated its Buy rating and $18.00 price target on Venture Global (NYSE:VG), currently trading at $13.71, following a virtual investor meeting with company management on August 14, 2025. According to InvestingPro data, analyst targets range from $12 to $21, with the stock currently showing mixed signals in its Financial Health Score.

The meeting, which included CEO Michael Sabel and CFO Jack Thayer, came after Venture Global’s second-quarter earnings report and recent positive developments including 3.75 mtpa of new SPAs in July, the FID of CP2 Phase 1, and a favorable outcome for CP1 arbitration. The company, with a market capitalization of $33.3 billion, reported strong gross margins of 52.8% in the last twelve months.

Management highlighted their focus on executing the ramp at Plaquemines where volumes and costs are trending well, managing construction at CP2 with first LNG expected by year-end 2027, securing new SPA contracts for CP2 Phase 2 and Phase 3, and beginning commercialization of the Plaquemines Expansion. InvestingPro analysis reveals the company operates with a significant debt burden of $30.9 billion, though maintaining a current ratio of 1.39.

The company noted that recent pricing in the low-to-mid-$2/mcf range for SPAs and approximately 15 mtpa of new contracts would be sufficient to proceed with construction of their medium-term target of more than 100 mtpa of capacity. Get deeper insights into Venture Global’s expansion plans and financial health with InvestingPro, which offers exclusive access to detailed research reports and real-time financial metrics.

Quarterly results exceeded expectations due to lower than anticipated operational and corporate costs, with Goldman Sachs refreshing its estimates upward through the end of the decade while maintaining its $18 price target and Buy rating on the stock. The company generated $8.4 billion in revenue over the last twelve months, though InvestingPro data indicates it’s currently burning through cash with negative free cash flow.

In other recent news, Venture Global Inc . reported its second-quarter 2025 earnings, showing a significant rise in revenue and operational income compared to the previous year. However, the company’s earnings per share (EPS) missed expectations by 70.83%. Despite this shortfall, the company experienced a positive reaction from investors, as indicated by a surge in pre-market trading. Additionally, Wells Fargo has adjusted its price target for Venture Global, raising it from $12.00 to $14.00, while maintaining an Equal Weight rating. This adjustment follows the company’s Q2 earnings performance, though Wells Fargo noted that Venture Global’s 2025 guidance remains unchanged. These developments highlight Venture Global’s current financial trajectory and investor sentiment.

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