Venture Global initiated with a Neutral at Citi

Citi initiated coverage of Venture Global (VG) with a Neutral rating and $18 price target Venture offers investors “more torque” to the liquified natural gas market given its relatively more open capacity position that allows the company to recycle cash flow at a higher velocity, the analyst tells investors in a research note. However, the firm says Venture’s open contract position is a “double-edged sword.” It forecasts global LNG oversupply beginning in 2027, which it believes may result in compressed margins and increased earnings volatility.