BN
|
BusinessAI Desk•5 views

Goldman Sachs Names 3 Stocks to Gain from Iran-Driven LNG Market Disruption

The U.S.-Iran war is forecast to disrupt the global LNG market until 2027, with Iranian attacks cutting Qatar's export capacity by 17% and affecting 3% of worldwide supply. Goldman Sachs recommends buying Venture Global, Cheniere Energy, and Golar LNG, citing tighter market conditions and elevated margins. Price targets are $18.50, $312, and $60, indicating potential gains of 17%, 9%, and over 13% respectively. The bank notes positive catalysts like buybacks and new vessels but warns of substantial energy price volatility as a major risk.

Ad slot
Goldman Sachs Names 3 Stocks to Gain from Iran-Driven LNG Market Disruption

The U.S.-Iran conflict has disrupted the global liquefied natural gas (LNG) market, with effects expected to persist through 2027. Goldman Sachs highlights three companies positioned to benefit from the resulting supply-demand shifts.

Market Disruption Overview

  • Iran's attacks have reduced Qatar's LNG export capacity by 17%, impacting approximately 3% of global supply, according to QatarEnergy's CEO Saad al-Kaabi and Goldman analyst John Mackay.
  • LNG margins are already 200% higher on average for the 2026-2028 period.
  • Tighter market balances and extended timelines for new supply are anticipated to support the industry, even if demand growth slows due to higher prices.

Goldman Sachs' Top Stock Recommendations

  • Venture Global (VG): Buy rating with a 12-month price target of $18.50, implying 17% upside from recent closing prices. Goldman raised 2026-2028 EBITDA estimates by 62% on average, citing accelerating positive catalysts, clearer funding paths, and leverage to rising global gas prices.
  • Cheniere Energy (LNG): Buy rating with a $312 price target, suggesting nearly 9% gain. The company's robust balance sheet and capital allocation strategy enable planned stock buybacks of $1 billion in Q3 and Q4 2025.
  • Golar LNG (GLNG): Buy rating with a $60 price target, equating to over 13% upside. Potential commissioning of a fourth floating LNG vessel and a recently initiated strategic review are seen as earnings drivers.

Associated Risks

  • Goldman emphasizes that significant commodity price volatility remains a key downside risk for all three stocks, despite higher earnings estimates.
  • Ongoing uncertainty in future energy markets could undermine the projected benefits.
Ad slot
Ad slot