Venture Global’s Q1 results and new liquefied natural gas supply deals drive Citi to raise its rating amid higher margins.
Citi upgraded Venture Global (VG) to Buy, citing meaningful margin expansion potential as the company secures new liquefied natural gas (LNG) supply agreements. The upgrade follows a 14% surge in VG shares Tuesday after strong Q1 earnings and full-year guidance, though shares dipped 1.7% in Wednesday trading.
Prior to the upgrade, Venture Global had underperformed peers despite a favorable LNG pricing environment. Analysts noted the company’s ability to capitalize on elevated global demand, particularly in Europe and Asia, as a key driver for the rating change.
The move reflects broader optimism in the energy sector, where LNG producers are benefiting from supply constraints and geopolitical tensions affecting traditional energy markets.