Here’s Why BofA Lowered the PT on Venture Global (VG)

​Venture Global, Inc. (NYSE:VG) is one of the Undervalued Stocks with Biggest Upside Potential. On December 10, Jean Ann Salisbury from the Bank of America Securities reiterated a Buy rating on Venture Global, Inc. (NYSE:VG), but lowered the firm’s price target from $15 to $11.

​The analyst noted that the valuations of the refiners surprised him in 2025, mainly due to temporary drivers including Ukrainian drone strikes on Russian infrastructure and tighter sanctions reducing Russian fuel exports, higher prices of European gas, and slower than expected ramp‑up of new global refining capacity. Salisbury noted that these factors took the valuations of refiners higher than expected. However, the analyst notes these factors to be cyclical rather than structural, Salisbury expects the valuations to return to normal.

​In addition, the analyst also highlighted that a Russia-Ukraine resolution is probable in 2026. This scenario will result in Russian pipeline gas returning to Europe, thereby lowering pressure on European gas and related LNG pricing. Salisbury highlights that if a resolution is reached, it would weaken Venture Global, Inc.’s (NYSE:VG) key support for high trans‑Atlantic LNG arbitrage, thereby directly impacting the company’s long-term margins.

​That said, earlier on November 25, Venture Global, Inc. (NYSE:VG) announced signing a major 20-year deal with Tokyo Gas, which is Japan’s leading natural gas supplier. As per the agreement, Tokyo Gas has agreed to buy 1 million tones per annum of liquefied natural gas starting in 2030.

​Venture Global, Inc. (NYSE:VG) produces and exports US liquefied natural gas (LNG) sourced from North American basins, operating facilities primarily in Louisiana.​

While we acknowledge the potential of VG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VG and that has 100x upside potential, check out our report about this cheapest AI stock.

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