Mizuho Downgrades Venture Global (VG) to Neutral After Losing BP Contract Breach Arbitration Case

Core Viewpoint - Venture Global Inc. has faced a significant setback due to an arbitration ruling that found it breached its contract with BP, leading to a downgrade by Mizuho analyst Gabriel Moreen from Outperform to Neutral with a reduced price target of $12 from $17 [1][2][3] Group 1: Arbitration Case and Impact - On October 9, BP won an arbitration case against Venture Global regarding the failure to deliver LNG under a long-term contract that was supposed to commence in late 2022 [2] - The International Chamber of Commerce International Court of Arbitration ruled that Venture Global breached its obligations by not declaring the start of commercial operations at its Calcasieu Pass plant on time and failing to act as a reasonable operator [2][3] - This ruling is a setback for Venture Global, contrasting with a previous decision in August where the company won against Shell in a similar complaint [3] Group 2: Analyst Perspective - Mizuho analyst Gabriel Moreen believes the arbitration ruling was a negative surprise for Venture Global, prompting the downgrade in stock rating [1][3] - Despite acknowledging the potential of Venture Global as an investment, the analyst suggests that certain AI stocks may offer greater upside potential with less downside risk [4]