Venture Global, Inc. (NYSE:VG) is one of the stocks that made it to our list of top 10 newsworthy upgrades and downgrades. On June 12, UBS downgraded the company’s stock from “Buy” to “Neutral,” while increasing the price objective to $18.00 from the prior target of $14.00. The firm believes that the stock now possesses a limited upside potential due to the recent stock price appreciation. Notably, Venture Global, Inc. (NYSE:VG)’s stock has seen a run-up of over ~65% in just one month. The higher valuation multiple reflects that investors have already priced in much of its improved performance outlook.
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Despite the downgrade, the firm has a constructive long-term view of Venture Global, Inc. (NYSE:VG). UBS believes that the fundamentals of the company are likely to remain strong. Overall, the downgrade is mainly valuation-driven. Venture Global, Inc. (NYSE:VG) saw a healthy Q1 2025 in terms of both project execution and financial performance. The company generated revenue of ~$2.9 billion, reflecting an increase of 105% YoY. The company’s first facility, Calcasieu Pass, achieved Commercial Operation Date, commencing the delivery of U.S. LNG to the project’s long-term customers.
Sands Capital, an investment management company, released its 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.”
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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