Morgan Stanley raises Venture Global, Cheniere to 'overweight'
23/03/2026 15:17
** Morgan Stanley upgrades U.S. LNG companies Venture Global VG.N and Cheniere Energy LNG.N to "overweight" from "underweight" ** Says events in the Middle East have improved the outlook for U.S. exporters and even with near-term resolution, global gas market will need to contend with refilling inventories amid a large supply loss, creating upside price risks ** "What started as a transitory (but significant) capacity outage has escalated to a multi-year loss of supply, tightening '26 and mitigating oversupply in '27-28", brokerage says ** VG has the greatest upside to rising global LNG prices due to a large share of uncontracted cargoes, meaning higher spot margins would materially boost earnings - Morgan Stanley ** For Cheniere, the macro environment increases the likelihood of growth projects reaching a positive FID over the next 1-2 years ** LNG's largely contracted portfolio ensures steady cash flows but limits direct benefit from the recent surge in Asian and European gas prices, brokerage adds ** Brokerage BMO also raised its PT on LNG to $306 from $265
| Company | Old Rating | New Rating | Old PT | New PT | Upside/downside to the stock last close |
| Venture Global VG.N | underweight | overweight | $8 | $22 | 39.1% upside |
| Cheniere Energy LNG.N | equal weight | overweight | $236 | $313 | 11.4% upside |
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