Goldman Sachs Keeps Buy Rating on Venture Global (VG) After Arbitration Decision

Venture Global, Inc. (NYSE:VG) is one of the 11 Dirt Cheap Stocks to Buy According to Analysts. On October 16, Goldman Sachs reduced its price target on Venture Global, Inc. (NYSE:VG) from $18 to $17.50 and reaffirmed a Buy rating.

This decision comes after Venture Global, Inc. (NYSE:VG) has fallen sharply because of an arbitration proceeding with BP plc (BP). The arbitration decision found that Venture Global, Inc. (NYSE:VG) did not declare commercial operations had begun at its Calcasieu Pass LNG facility (CP1) in a timely manner. BP plc (BP) is seeking damages of over $1 billion plus interest, costs, and attorneys’ fees.

Goldman Sachs has updated its model to assume a $1 billion outflow in the fourth quarter of 2026 for Venture Global, Inc. (NYSE:VG). The firm noted that the final amount of damages and timing will be decided late next year and could effectively be appealed.

The firm’s analysis also considered a downside scenario where Venture Global, Inc. (NYSE:VG) loses all ongoing cases. This could lead to a total outflow of $5.3 billion, which can be funded through common equity. Even in such a scenario, Goldman Sachs values the stock at $13 per share, which is higher than the current trading price of less than $9.

Goldman Sachs expects Venture Global, Inc. (NYSE:VG) to share positive contract announcements in its Q3 2025 earnings report. The firm acknowledged that while the arbitration decision creates an overhang, the recent sell-off seems too severe.

Venture Global, Inc. (NYSE:VG) is an American company that produces and exports liquefied natural gas (LNG).

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