Venture Global rises after brokerages begin coverage with bullish rating
Venture Global shares reached a weekly peak on February 18th, after several brokerages began coverage of the company with bullish ratings despite its dull market debut in January.
Venture Global shares rose 5.8% to $16.87.
On January 24, the liquefied gas (LNG), provider started trading at New York Stock Exchange for $24.05 per stock, valuing the company as the largest gas exporter. Its market capitalization is $58.2 Billion.
Investors and analysts are concerned about the company's long-term profits and legal disputes with UK energy giants BP and Shell.
After the quiet period expired, J.P.Morgan and Citigroup began covering the stock.
Analysts at J.P.Morgan who are "overweighted" on Venture Global said that the company's "design one, make many" strategy is an industry disrupter due to its low cost and speed of market entry, while competitors face numerous challenges, such as project delays and increasing costs.
Guggenheim began with a rating of "buy", and said Venture Global, which was rated as a "buy", could become the largest LNG producer in the world, thanks to the U.S. Administration's new energy policies and the rising demand for gas in Europe and Asia Pacific.
Citigroup, on the other hand maintained a rating of "neutral", warning that a rise in LNG supplies in the global markets could offset the strengths of the company and weigh down its margins.
TotalEnergies of France, the latest blow to Venture Global, rejected an offer to be a long-term client of its U.S. Liquefied Natural Gas terminals. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru. Johann M Cherian is based in Bengaluru.
(source: Reuters)
