NextDecade Shares Soar 3.99% on LNG Deal, Analyst Upgrades

NextDecade(NEXT) shares surged 3.99% today, marking the seventh consecutive day of gains, with a 33.33% increase over the past week. The stock price reached its highest level since July 2017, with an intraday gain of 5.03%.

The strategy of buying NEXT shares after they reach a recent high and selling after one week resulted in no return over the past five years. The strategy had a CAGR of 0.00% and an excess return of -57.67%, underperforming the benchmark significantly. Additionally, the strategy had a maximum drawdown of 0.00% and volatility of 0.00%, indicating a risk-averse approach but failing to generate any returns.

NextDecade Corporation recently announced a significant 20-year agreement to supply liquefied natural gas (LNG) to Japan's JERA from its Rio Grande LNG project. This long-term deal is expected to bolster the company's financial stability and operational efficiency, providing a steady revenue stream over the next two decades.

In addition to the LNG supply agreement, NextDecade has made substantial progress with its Rio Grande LNG project. The company has secured new Engineering, Procurement, and Construction (EPC) contracts for Trains 4 & 5, which are crucial components of the project. These contracts are anticipated to accelerate the project's development and enhance its overall capacity, further solidifying NextDecade's position in the LNG market.

NextDecade's stock has also benefited from positive analyst ratings. TD Cowen upgraded the company from a "hold" rating to a "buy" rating, setting a price objective of $11.00. This upgrade reflects the analysts' confidence in NextDecade's growth prospects and its strategic initiatives in the LNG sector. Additionally, Morgan Stanley has maintained a "buy" rating for the company, further validating its strong market position.