Venture Global stock upgraded to Buy at Deutsche Bank on LNG strategy

Published 28/08/2025, 08:38
Venture Global stock upgraded to Buy at Deutsche Bank on LNG strategy

Investing.com - Deutsche Bank upgraded Venture Global (NYSE:VG) stock rating from Hold to Buy and set a price target of $17.00 following a site visit to the company’s Plaquemines LNG facility in Louisiana. The upgrade comes as the $30.3 billion market cap company maintains profitability with a P/E ratio of 25.2x, though InvestingPro data indicates it operates with significant debt levels.

The upgrade came after Deutsche Bank analysts toured the Louisiana facility with Venture Global’s management team, including CEO Mike Sabel, CFO Jack Thayer, and COO Brian Cothran, gaining deeper insights into the company’s construction and commissioning processes. The company’s gross profit margin stands at 52.8%, with analysts forecasting revenue growth of 185% for the fiscal year 2025.

Deutsche Bank noted that while Venture Global is primarily known for its factory-built, mid-scale liquefaction trains, this approach "barely scratches the surface" of how the company differentiates its simultaneous commissioning and construction process.

The bank’s analysts were particularly impressed with the "complex, disciplined, and deliberate" sequencing of construction activities that enable Venture Global to conduct commissioning and construction work simultaneously at its projects.

The site visit, which took place on Wednesday, provided Deutsche Bank with a "much better understanding" of Venture Global’s operational approach, contributing to the more positive outlook reflected in the upgraded rating.

In other recent news, Venture Global reported its second-quarter 2025 earnings, showcasing significant growth in revenue and operational income compared to the previous year. Despite this growth, the company’s earnings per share fell short of analyst expectations, with a notable 70.83% miss. In light of these results, Wells Fargo raised its price target for Venture Global to $14.00 from $12.00, while maintaining an Equal Weight rating. UBS upgraded Venture Global from Neutral to Buy, citing a stronger-than-expected volume ramp at the Plaquemines project, which exported 51 cargoes in the second quarter of 2025. Goldman Sachs reiterated its Buy rating and $18.00 price target, highlighting positive developments such as new supply agreements and favorable arbitration outcomes. UBS also maintained its Buy rating after a visit to the Plaquemines LNG facility, impressed by the scale of operations and production timeline. These developments reflect ongoing positive sentiment from investment firms regarding Venture Global’s strategic initiatives.

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