Venture Global stock price target raised to $18 by Goldman Sachs

Published 09/07/2025, 11:30
Venture Global stock price target raised to $18 by Goldman Sachs

Investing.com - Goldman Sachs has raised its price target on Venture Global (NYSE:VG) to $18.00 from $17.50 while maintaining a Buy rating ahead of the company’s second-quarter 2025 results. The stock, currently trading at $15.76 with a market capitalization of $38.14 billion, appears overvalued according to InvestingPro analysis.

The investment bank expects Venture Global to report second-quarter EBITDA of $1,264 million, which is 4% higher than the FactSet consensus estimate of $1,210 million, citing higher cargoes and margins realized in the quarter as indicated in the company’s pre-release. The company’s last twelve months EBITDA stands at $2.69 billion, with a robust gross profit margin of 57%.

Key focus areas for investors include the near-term CP2 Phase 1 Final Investment Decision, recent contracting developments including the Petronas announcement last week, margin capture details, and timing for upside utilization at the company’s Plaquemines and CP1 facilities.

Goldman Sachs noted some headwinds in its longer-term outlook, including the removal of the Delta project following its permit rescission and slightly lower long-term gas spreads as competing U.S. projects continue to take contract share.

These headwinds are offset by a deferral of common equity issuances until 2027 as funding appears more flexible near-term, and a tighter equity discount rate in Goldman’s DCF model (now 11.5%) due to continued operational momentum, recent SPA contracting success, and the Delta removal. InvestingPro data reveals the company operates with significant debt and negative free cash flow, with 12 additional key insights available to subscribers.

In other recent news, Venture Global has reported its LNG export volumes and fees for the second quarter of 2025. The company exported 38 cargos from its Calcasieu Pass facility and 51 cargos from its Plaquemines LNG facility, with respective liquefaction fees of $2.66 and $7.09 per MMBtu. Additionally, Venture Global expanded its LNG supply deal with Germany’s SEFE, increasing the supply to 3.0 million tonnes per annum under a 20-year contract. The company also secured a new 20-year agreement with PETRONAS LNG Ltd. for 1 million tonnes per annum from its CP2 LNG facility. This agreement builds on an existing commitment from PETRONAS to purchase LNG from the Plaquemines facility. Analyst firm Mizuho (NYSE:MFG) raised its price target for Venture Global to $17.00, maintaining an Outperform rating, citing positive developments in the company’s production capacity and strategic growth plans. Venture Global is also focusing on brownfield expansions, particularly at the Plaquemines facility, before proceeding with other projects. These developments indicate a continued expansion of Venture Global’s global partnerships and production capabilities.

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