Deutsche Bank Downgrades Venture Global (VG) Stock

Venture Global, Inc. (NYSE:VG) is one of the Best Beaten Down Stocks to Buy Now. Deutsche Bank downgraded the company’s stock to “Hold” from “Buy” with a price objective of $17, up from the prior target of $13.50, as reported by The Fly. The firm cited valuation as a factor for the downgrade, with Venture Global, Inc. (NYSE:VG)’s shares near the new price target. Furthermore, the company’s longer-term valuation remains challenged by the lack of liquidity in the Title Transfer Facility curve, and its spending on the Calcasieu Pass 2 development, highlighted the firm’s analyst.

The CP2 Project got authorization from the U.S. Department of Energy to export LNG to non-free trade agreement nations. Notably, the company has also announced that it has initiated full mobilization and started site work at its third LNG export facility, CP2 LNG. Venture Global, Inc. (NYSE:VG) expressed optimism about launching on-site work for this project, which is anticipated to deliver reliable, low-cost LNG to the world starting in 2027. Venture Global, Inc. (NYSE:VG) announced the execution of a new 20-year Sales and Purchase Agreement with PETRONAS LNG Ltd., which is a subsidiary of Malaysian state-owned oil and gas company, PETRONAS.

Venture Global, Inc. (NYSE:VG) is a long-term, low-cost provider of US LNG sourced from resource-rich North American natural gas basins.

Sands Capital, an investment management company, released it Q1 2025 investor letter. Here is what the fund said:

“Venture Global, Inc. (NYSE:VG) specializes in the development and operation of liquefied natural gas (LNG) export facilities along the U.S. Gulf Coast. We believe natural gas demand is likely to continue growing over the next several decades as an abundant, affordable, reliable, highly scalable, and relatively clean energy source relative to other hydrocarbons. Given the fundamental mismatch between where the world’s largest and cheapest natural gas resources are located (primarily the United States and the Middle East) versus key areas of demand growth (Asia), we expect LNG demand to grow even faster while becoming increasingly critical from a global energy security perspective. Against this backdrop, we expect that Venture Global’s modular approach to facility development will enable the company to capture a disproportionate share of incremental demand. Its innovative approach meaningfully compresses construction timelines, reduces capital intensity and operating costs, and, we believe, facilitates a virtuous cycle that can allow for project cash flows to be generated and reinvested much faster and more effectively than for its peers. As a result, we see a runway for Venture Global to sustain above-average growth as it profitably expands its production over the next decade.”

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Disclosure: None. This article is originally published at Insider Monkey.