Venture Global gains as Wells Fargo turns bullish on AI data center strategy

By Reuters News

** Shares of LNG producer Venture Global VG.N up 3.4% at $13.25 before the bell as Wells Fargo upgrades to 'overweight' from 'equal weight', saying it has increased confidence co can execute on at least 2 GW of its AI data center strategy

** Brokerage boosts PT by $6 to $21, implying 64% upside to stock's last close

** Wells Fargo believes VG has secured GE Vernova GEV.N heavy-duty turbine slots spanning 2029-34, including a meaningful portion of GEV's remaining capacity in 2029-30

** Brokerage estimates the 2029-30 deliveries alone represent ~2 GW of the broader 11 GW framework, and could be worth ~$5/sh, which it believes is not reflected in VG's current stock price

** VG inked agreements last week with GEV and Baker Hughes BKR.O to support up to 16 new power generation units, advancing plans to supply electricity to data centers without adding strain to already constrained public grids

** Wells Fargo says rising international prices should allow VG to fund the entire build from internal cash flow, with no new common equity, and also "materially reduce" 2027 leverage

** 12 of 18 brokerages rate the stock "strong buy" or "buy", 6 "hold"; median PT $16.50, per LSEG data

** At close on Mon, stock rallied 88% YTD

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