BUZZ - Wells Fargo is optimistic about AI data center strategies, Venture Global stock surges

October 20 - ** LNG producer Venture Global (VG.N) shares rose 3.4% in premarket trading to $13.25 after Wells Fargo upgraded its rating from "neutral" to "overweight", stating it is more confident in the company's ability to deliver at least 2 GW in its artificial intelligence data center strategy

** The broker raised its price target by $6 to $21, implying a 64% upside from the stock's previous closing price

** Wells Fargo believes VG has secured production quotas for GE Vernova (GEV.N) heavy-duty turbines for the period 2029 to 2034, including a significant portion of GEV's remaining capacity in 2029 and 2030

** The broker estimates that deliveries in 2029-30 alone account for about 2 GW of the entire 11 GW framework, potentially worth about $5 per share, and believes this value is not yet reflected in VG's current share price

** Last week, VG signed an agreement (link) with GEV and Baker Hughes BKR.O to support the construction of up to 16 new generator units, advancing its plan to power data centers while avoiding further strain on the already tight public grid

** Wells Fargo noted that with rising international prices, VG should be able to fund the entire construction project with internal cash flow alone, without issuing new common stock, and can also "significantly reduce" its leverage in 2027

** According to LSEG data, out of 18 brokers, 12 have a "strong buy" or "buy" rating on the stock, while 6 have a "hold" rating; the median price target is $16.50

** As of Monday's close, the stock is up 88% year-to-date

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