The most worthwhile global natural gas stocks to buy now

LootboxPhobia · 2026-02-25T00:58:29+00:00

Morgan Stanley has downgraded the global natural gas and LNG industry outlook to cautious, expecting oversupply to impact spot sales margins. The firm is optimistic about Excelerate Energy, with a target price raised to $40, due to its relatively strong performance in a weak market. Although the stock price has approached fair value, the rating remains hold and watch.

LootboxPhobia

2026-02-25 00:58:29

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Investing.com – Morgan Stanley has adjusted its outlook for the global natural gas and liquefied natural gas (LNG) sector, downgrading the industry view from Neutral to Cautious as the market prepares for an expected shift to oversupply.

The investment bank expects this shift to pressure spot sales margins and reduce demand for new long-term purchase agreements. The pace of final investment decisions and overall growth are also expected to slow.

In this environment, Morgan Stanley believes that companies with exposure to downstream demand trends will become relative winners, highlighting Excelerate Energy in particular.

Excelerate Energy

Morgan Stanley has raised its target price from $30 to $40 while maintaining an Overweight rating.

The firm considers Excelerate Energy a “relative winner” in a weak pricing environment because it has no direct commodity price exposure and could benefit from stronger downstream demand growth.

The updated target price reflects more growth under the base case scenario and adjustments to the discount rate based on the latest regional market risk premiums. Morgan Stanley forecasts EBITDA of $114 million in Q4 2025, 3% above market consensus, and $544 million in 2026, also 3% above consensus.

The company expects to receive more disclosures in the coming quarters regarding fleet expansion plans and growth projects.

However, the Overweight rating remains unchanged, as the stock has risen about 50% year-to-date, approaching Morgan Stanley’s estimated fair value.

In recent news, Excelerate Energy’s board approved a new share repurchase program of up to $75 million. The company also received a strong Buy rating upgrade from Raymond James, while Jefferies raised its target price to $40.

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