economy
Iran war has altered the global natural gas market. Goldman says these 3 stocks will benefit
Liquid natural gas plays are set to win thanks to constrained supply, even if demand eases due to higher prices.
TL;DR
- Goldman Sachs expects the LNG market to remain disrupted through 2027 due to the U.S.-Iran war.
- Attacks from Iran have reduced Qatar's LNG export capacity by 17%, affecting about 3% of global supply.
- Higher LNG margins (200% average for 2026-2028) and long lead times for new supply are expected to support the industry.
- Venture Global is rated 'buy' with a price target of $18.50, implying 17% upside, with raised EBITDA estimates.
- Cheniere Energy is also seen as a beneficiary, with a 'buy' rating and a $312 price target, anticipating stock buybacks.
- Golar LNG is rated 'buy' with a $60 price target, potentially benefiting from a fourth floating LNG vessel and a strategic review.
- A key downside risk for all three companies is the general uncertainty in future energy markets, leading to potential commodity price volatility.