TD Cowen cuts NextDecade to 'hold' on financing, margin risks

TD Cowen downgrades LNG producer NextDecade NEXT.O to "hold" from "buy"; cuts price target to $8 from $11

Still, new PT represents an upside of about 17% to the stock's last close

Brokerage says the cut was due to NEXT's recently disclosed financials, which were below expectations

"The primary difference compared to our model was a higher amount of equity financing for Train 4 and 5 than previously guided" - TD Cowen

Brokerage expects gas prices to decline from 2H26 as new global LNG capacity comes online

TD Cowen says the lower margins could reduce steady-state cash generation and delay or limit paydown of high-cost debt

Three out of 4 brokerages rate the stock "buy" and 1 "hold"; their median PT is $11 - data compiled by LSEG

As of last close, NEXT shares down 11.3% YTD