BofA cuts Venture Global price target, says arbitration worst case baked in

BofA lowered the firm’s price target on Venture Global (VG) to $15 from $18 and keeps a Buy rating on the shares after the company lost its arbitration with BP. While the damages hearing won’t occur until 2026, the company noted that the aggregate liability cap of $1.6B will likely be waived, meaning that damages BP could be seeking might be closer to $1.4B-1.9B compared to the $1B quoted in the 8-K release, BofA told investors. With the stock down 25% on Friday, the firm believes that on this issue the worst case is now baked in, even though Venture Global could win future arbitrations, according to BofA.