-Morgan Stanley upgraded its rating on NextDecade from "equal weight" to "overweight," and boosted its price target from $2 per share to $6 per share. That new target is still more than 80% above the current price even after Monday's rally. Underpinning that upgrade is the view that a global recovery in the natural gas market is "well underway."
-Morgan Stanley believes NextDecade stands out in its field because its carbon-capture venture will enable it to produce low-carbon LNG, which should boost its prospects of reaching a final investment decision on its proposed Rio Grande LNG facility. Further, the company should benefit from higher natural gas prices and an expected capacity shortfall in the coming years.
-Those improving market conditions also led Morgan Stanley to upgrade shares of rival Tellurium (NASDAQ:TELL) from "underweight" to "equal weight" while boosting that stock's price target from $2 per share to $8, nearly 90% above its current level. Tellurium's Driftwood LNG project is also on the path to achieving a final investment decision after securing large LNG purchase agreements.
-Energy demand is recovering from the drop-off it experienced earlier in the pandemic. That's making it increasingly likely that NextDecade will be able to move forward with its long-awaited Rio Grande LNG project. That has the potential of generating a significant amount of cash flow for investors. If the company can move forward with that needle-moving project, its stock should have lots of upside.
-Morgan Stanley believes NextDecade stands out in its field because its carbon-capture venture will enable it to produce low-carbon LNG, which should boost its prospects of reaching a final investment decision on its proposed Rio Grande LNG facility. Further, the company should benefit from higher natural gas prices and an expected capacity shortfall in the coming years.
-Those improving market conditions also led Morgan Stanley to upgrade shares of rival Tellurium (NASDAQ:TELL) from "underweight" to "equal weight" while boosting that stock's price target from $2 per share to $8, nearly 90% above its current level. Tellurium's Driftwood LNG project is also on the path to achieving a final investment decision after securing large LNG purchase agreements.
-Energy demand is recovering from the drop-off it experienced earlier in the pandemic. That's making it increasingly likely that NextDecade will be able to move forward with its long-awaited Rio Grande LNG project. That has the potential of generating a significant amount of cash flow for investors. If the company can move forward with that needle-moving project, its stock should have lots of upside.