Nov. 24 at 11:15 AM
$VG Citi on Friday slashed its price target for Venture Global from
$16 to
$9 per share, warning that weak liquefied natural gas prices and more losses in arbitration cases against customers could lead to a "prolonged overhang" for the stock.
...
Citi estimates the roughly
$5 billion in arbitration liabilities from Shell, BP, and other customers could reduce Venture Global's valuation by another
$2 per share. The uncertainty on arbitration outcomes is expected to weigh on share buyback expectations, resulting in another
$3 per share drag, the Citi team says.
"At current trading levels, we estimate the stock is currently imputing lower LNG margins, minimal future growth, and/or additional negative arbitration outcomes beyond what the company has stated," they wrote.
...
Citi now values Venture Global's shares at 16 times 2027 earnings before interest, taxation, depreciation, and amortization, elevated versus its peers due to expansion projects not fully reflected by 2027.
