Please ensure Javascript is enabled for purposes of website accessibility

Why NextDecade Stock Is Skyrocketing Again Today

By Matthew DiLallo – Jun 8, 2021 at 11:26AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The LNG developer got another big vote of confidence.

What happened

Shares of NextDecade (NEXT 6.64%) catapulted more than 53% by 10:30 a.m. EDT on Tuesday. Fueling the liquefied natural gas (LNG) stock was another analyst upgrade. That's its second one in the last two days, helping propel shares by more than 100% this week.

So what

An analyst from Evercore ISI upgraded NextDecade from in-line to outperform. The analyst also boosted their price target from $3 per share to $9, implying more than 65% upside, even after today's rally. 

A stock chart on a video board with people in the background.

Image source: Getty Images.

Fueling that upgrade is the analyst's increasingly bullish view of the LNG market, which they see shifting in favor of developers along the U.S. Gulf Coast. The analyst noted that buyers are increasingly signing new long-term LNG purchase agreements. That could enable NextDecade and rival Tellurian (TELL 9.62%) to secure enough new contracts to move forward with their LNG development projects.

Tellurian has already signed two sizable deals in recent weeks, putting it close to approving its Driftwood LNG project. Meanwhile, NextDecade's Rio Grande LNG project should also be able to secure contracts, given its focus on producing low-carbon LNG.

Now what

After many years, it appears as if NextDecade will finally be able to move forward with its Rio Grande project, thanks to improving LNG market conditions. The facility has the potential of generating a significant amount of future cash flows for the company once complete. That upside suggests the stock could have more room to run, especially if it can sign enough purchase agreements to officially sanction the project.   

Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NextDecade Corporation Stock Quote
NextDecade Corporation
$6.42 (6.64%) $0.40
Tellurian Inc. Stock Quote
Tellurian Inc.
$2.62 (9.62%) $0.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.