NextDecade downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded NextDecade (NEXT) to Equal Weight from Overweight with a price target of $10, down from $15. The company reached a final investment decision on Train 4 of its Rio Grande project and reiterated expectations for a decision on Train 5 in Q4, the analyst tells investors in a research note. NextDecade now expects $1B of annual cash flow from the project, which is toward the low end of the prior $900M-$1.3 B range, adds Morgan Stanley. The firm’s cash flow estimates move lower following the update and it sees limited near-term catalysts remaining for the shares.