Dec. 11 at 11:40 AM
$VG 06:39 EST BofA lowered the firm's price target on Venture Global to
$11 from
$15 and keeps a Buy rating on the shares.
The valuations of the refiners "have surprised us this year" as it felt like "a perfect storm of likely temporary drivers," including Ukraine-Russia drone strikes, more Russia sanctions, high European gas prices, and slower than expected ramp of new refineries, the analyst tells investors. It seems that some resolution is getting more likely in 2026 and the potential end of the conflict would also have the effect of sending more Russian pipeline gas to Europe, the analyst added. This risk, plus the looming oversupply of LNG, causes the firm to lower its 2029/30 arb, which slows growth and lowers its price target for Venture.