Wall Street analysts are optimistic about the future of Venture Global, the second purebred liquefied natural gas company in the U.S. venture capital world, which began trading on the New York Stock Exchange on January 24, the largest first public product One of the companies over the years. Venture’s stock then fell 36% to $25 per share to $15.96 as of Friday’s close. However, Goldman Sachs, Bank of America, Bank of America, Deutsche Bank, Royal Bank of Canada Capital Markets and Ruisui Securities’ JP Morgan have all started covering joint ventures, which is also equivalent to a buy rating. Goldman Sachs has a price target of $29, and the current level will provide about 82% upside, while JP Morgan has a price target of $25, indicating an upside of about 57%. Investment banks believe Venture’s unique construction and operational model will allow the company to build LNG export facilities faster than its competitors and bring the nameplate capacity of these facilities to the upside after it is online. Goldman Sachs, JP Morgan and Bank of America are the major underwriters of the IPO. Royal Bank of Canada Capital Markets, Ruijihao and Deutsche Bank also serve as underwriters. VG 1 million Mountain Risk Global shares in the past month. According to JPMorgan, Venture’s Calcasieu Pass and Plaquemines facilities on Louisiana’s Gulf Coast quickly turned the company into the U.S.’s second largest LNG producer, behind Cheniere, which is under construction or commissioning every year. The capacity is 30 million tons. Venture has three other facilities under development, although final investment decisions have not been reached. According to JPMorgan, if all of these facilities go online, if too much capacity and expansion of the current location is included, venture capital will have a total potential capacity of 179 million tons per year. In some cases, the LNG industry has plagued the execution issues that take more than six years to complete. However, Venture adopts a “Lego Block” development approach, in which the company assembles prefabricated standardized modules on site, allowing faster deployment and scalability with traditional custom, sticky designs. Goldman Sachs analysts led by John Mackay and told clients in a note Monday that faster construction schedules and potential to exceed facility nameplate capabilities could provide “large amounts of cash flow and return on capital.” According to JPMorgan, the basis of Venture’s nameplate capacity is the basis of contract volume, but the company has the potential to generate levels above this level, and future locations are expected to have a large portion of estimated capacity left. Contracts. According to JPMorgan, this will allow venture capital to sell uncontracted sales and put earnings into future expansion. Goldman Sachs said the potential of selling uncontracted volumes will allow risk taking advantage of the difference between low U.S. natural gas prices and rising international prices. According to the investment bank, peers were unable to take advantage of this due to their contracts. Mackay of Goldman said that uncontracted LNG capacity will achieve higher cash profit margins at more than 60% of the operating day when U.S. LNG exports began in 2016. JPMorgan said the joint venture’s main risks include pricing fluctuations in liquefied natural gas, ongoing arbitration disputes with clients, high leverage, increasing competition and project execution for competitors with greater financial capabilities. JPMorgan analysts led by Jeremy Tonet said that while the LNG production train alone showed too much capacity at Calcasieu Pass, it still needs to be proven that it can maintain this situation. “We noticed that VG extends forward or delays the expansion timelines for the first three facilities will have a significant impact on our valuation,” Tonet’s team told clients. – Michael Bloom of CNBC This report contributed.
Analysts are bullish on the LNG inventory, publicly published last month | Real Time Headlines
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