---
title: "NextDecade falls after Morgan Stanley cuts rating, price target"
description: "Shares of NextDecade fell 6.3% to $7.18 after Morgan Stanley downgraded its rating to \"Equal-weight\" from \"Overweight\" and reduced the price target from $15 to $10. The brokerage noted that while the "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/257141148.md"
published_at: "2025-09-12T15:20:43.000Z"
---

# NextDecade falls after Morgan Stanley cuts rating, price target

> Shares of NextDecade fell 6.3% to $7.18 after Morgan Stanley downgraded its rating to "Equal-weight" from "Overweight" and reduced the price target from $15 to $10. The brokerage noted that while the final investment decision on Train 4 of the Rio Grande LNG project provided clarity, the updated financial outlook was disappointing, with expected annual cash flow now at about $1 billion, lower than previous estimates. High financing costs and lower implied sales rates for Trains 4 and 5 also contributed to the negative outlook, leading to a year-to-date decline of approximately 7% in the stock.

\*\* Shares of LNG producer NextDecade fall 6.3% to $7.18 after Morgan Stanley cuts rating to "Equal-weight" from "Overweight"

\*\* MS also cut its PT to $10 from $15

\*\* Brokerage says NEXT's recent final investment decision on Train 4 of its Rio Grande LNG project in Texas brought clarity on costs and timeline, but updated financial outlook disappointed

\*\* Says NEXT now expects about $1 billion in annual cash flow from five trains, at the low end of its earlier $0.9 billion to $1.3 billion range for the full 5-train project

\*\* High financing costs are also weighing on the outlook, MSadds

\*\* For Trains 4 and 5, NEXT implied sales and purchase agreement rates are $2.54 per mmbtu, lower than MS's prior forecast of $2.63

\*\* Including session's move, stock down about 7% YTD

### Related Stocks

- [NEXT.US - NextDecade](https://longbridge.com/en/quote/NEXT.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.