Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Mizuho downgraded Venture Global (NYSE:VG) from Outperform to Neutral and lowered its price target to $12.00 from $17.00 following an unfavorable arbitration decision. The stock, currently trading at $12.58, has fallen nearly 10% in the past week, while maintaining a significant market cap of $30.54 billion. According to InvestingPro data, the company’s Financial Health Score stands at FAIR, with analysts generally maintaining a neutral stance.
The arbitration decision, announced after market close on Thursday, found that Venture Global breached its obligations to declare commercial operations date (COD) at its Calcasieu Pass LNG facility (CP1) in a timely manner in a case brought by customer BP. InvestingPro analysis reveals the company operates with a concerning debt-to-equity ratio of 5.87x, which could amplify the impact of potential arbitration outcomes.
Unlike a previous arbitration with Shell where Venture Global was not found liable for damages related to CP1’s in-service date and sale of pre-commissioning cargoes, this ruling represents a significant setback for the company.
BP is seeking more than $1 billion in damages, which will be determined in a separate proceeding scheduled to take place in 2026 or later.
Mizuho cited uncertainty surrounding the remaining $2.5 billion in potential CP1 arbitration cases as a key factor in its downgrade, noting that the shares are likely to remain capped until further clarity emerges on the arbitration outcomes.
In other recent news, Venture Global Inc . reported its liquefied natural gas (LNG) export volumes and fees for the third quarter of 2025. The company exported 100 LNG cargos totaling 371.8 trillion British thermal units, with a weighted average fixed liquefaction fee of $5.07 per million British thermal units. In a separate development, Venture Global faced a setback in an arbitration ruling with BP Gas Marketing Limited concerning LNG sales from its Calcasieu Pass facility. The tribunal found that Venture Global breached its obligations under a long-term agreement, with BP seeking damages exceeding $1 billion. Meanwhile, Deutsche Bank upgraded Venture Global’s stock rating from Hold to Buy, setting a price target of $17.00, following a visit to the company’s Plaquemines LNG facility. UBS also reaffirmed its Buy rating with an $18.00 price target, impressed by the site’s scale of operations and production timeline. These recent developments highlight significant activities and analyst perspectives surrounding Venture Global.
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