Goldman Sachs analysts updated their projections for three buy-rated energy stocks as global oil prices stay elevated and energy-market disruptions continue.
Goldman said the disruption of gas flows through the Strait of Hormuz would still be an issue for the market even in the event of a near-term resolution to the conflict.
Goldman analysts on Wednesday updated their earnings estimates for three top picks within the energy sector.
“Within our coverage, we highlight Cheniere Energy (LNG), Venture Global (VG), and Golar LNG (GLNG) as well positioned to capitalize on tighter global gas demand balances,” they wrote.
What Goldman says: The analysts highlighted the midstream energy company’s contracted cash flows, solid balance sheet, and capital allocation strategy. They also said that upcoming growth catalysts are increasingly clear for Cheniere Energy, including its Louisiana and Texas facilities.
What Goldman says: Venture Global has a “clear and accelerating positive catalyst path” for growth, the analysts wrote. VG can capitalize on higher global gas prices because of its open liquefaction capacity.
What Goldman says: The analysts are constructive on GLNG stock, saying there is a “clear positive catalyst path” for Golar LNG since it’s expected to secure a fourth floating liquefied natural gas vessel. They also flagged an underappreciated commodity upside and a recent strategic review as other positive levers.
