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Investing.com - UBS upgraded Venture Global (NYSE:VG), currently valued at $30.3 billion with a P/E ratio of 25.2x, from Neutral to Buy while maintaining its $18.00 price target, citing stronger-than-expected volume ramp at the company’s Plaquemines project.
The research firm noted that Plaquemines exported 51 cargoes in the second quarter of 2025, exceeding the fully ramped Calcasieu Pass facility by 13 cargoes. Venture Global reported a record 89 total cargoes in Q2 2025, compared to 63 in Q1 2025 and 36 in Q2 2024. The company maintains profitability with a 52.8% gross margin, though operating with a significant debt-to-equity ratio of 5.87x.
UBS believes the market is underestimating Plaquemines’ commissioning cargo volumes, projecting approximately 600 cargoes versus the company’s guidance of 550. The additional 50 commissioning cargoes could generate approximately $970 million in earnings upside not currently reflected in consensus estimates.
The investment bank highlighted that Venture Global currently trades at a 2.5x discount to its peer group despite improving execution. UBS expects this valuation gap to close as operational performance continues to strengthen.
The firm also noted that the risk of payout in case of loss during arbitration proceedings has decreased materially, further supporting the positive outlook for Venture Global stock.
In other recent news, Venture Global 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, Wells Fargo raised its price target for Venture Global to $14.00 from $12.00, maintaining an Equal Weight rating, following the company’s earnings beat. Meanwhile, Goldman Sachs reiterated its Buy rating with an $18.00 price target, citing positive news flow from the company. Notably, the firm highlighted recent developments such as 3.75 mtpa of new SPAs in July and favorable outcomes in arbitration. Additionally, Venture Global’s management discussed these updates during a virtual investor meeting, which included CEO Michael Sabel and CFO Jack Thayer. These developments reflect ongoing strategic initiatives and investor interest in the company’s future prospects.
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