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Investing.com - Wells Fargo raised its price target on Venture Global (NYSE:VG) to $14.00 from $12.00 while maintaining an Equal Weight rating on the stock. The stock currently trades at $13.64, with analysts’ targets ranging from $12 to $21, according to InvestingPro data.
The price target increase follows Venture Global’s Q2 earnings beat, though the company’s 2025 guidance remains unchanged according to the investment bank. While the company remains profitable with a gross margin of 53%, InvestingPro analysis indicates the company operates with significant debt and rapid cash burn.
Wells Fargo cited several factors for the $2 increase, including a shift forward in its valuation models to 2027, higher spreads, and a lower discount rate reflecting reduced risk due to additional long-term contracts.
The bank also noted that a favorable resolution of arbitration with Shell removes a key overhang for the company.
Wells Fargo’s new price target is based on a blend of a two-stage dividend discount model, a two-stage discounted cash flows analysis, and a sum-of-the-parts valuation based on the bank’s 2035 forecast discounted back to 2027.
In other recent news, Venture Global Inc . announced its second-quarter 2025 earnings, highlighting significant growth in both revenue and operational income compared to the previous year. Despite these gains, the company’s earnings per share (EPS) missed analysts’ expectations by a substantial 70.83%. This earnings miss did not dampen investor enthusiasm, as reflected by a positive reaction in pre-market trading. The market’s optimism appears linked to the company’s strategic initiatives, although specific details were not disclosed in the earnings report. These developments underscore the mixed signals investors often navigate, balancing strong revenue growth against earnings shortfalls. The company’s future strategies and their potential impact remain a focal point for analysts and investors alike.
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