Street Calls of the Week
On Wednesday, analysts from Bernstein emphasized EQT Corporation (NYSE:EQT) and EXE as their top investment ideas at the Bernstein Strategic Decisions Conference. The conference, which took place during the week of May 26, 2025, featured discussions with seven major companies, including Exxon Mobil (NYSE:XOM), Cheniere Energy (NYSE:LNG), and EOG Resources (NYSE:EOG). EQT (ST:EQTAB), with its substantial market capitalization of $33.9 billion, has shown impressive momentum with a 27.5% return over the past six months.
Bernstein analysts expressed optimism about EQT’s prospects, citing its strong position in the U.S. natural gas market. According to InvestingPro data, the company is currently trading near its 52-week high of $57.37, with analysts projecting significant revenue growth of 56% for fiscal year 2025. They noted EQT’s potential for steady free cash flow generation, driven by increased production, rising gas prices, and reduced capital expenditures. The analysts believe EQT’s high beta to U.S. gas and power markets positions it well for future growth, supported by a moderate debt level and consistent dividend payments yielding 1.11%.
EXE was also highlighted for its strategic consolidation in the Haynesville Basin, which is considered the only growing gas region. As the largest gas producer as of 2024, EXE is noted for its value-focused approach and disciplined operations. Bernstein analysts see these factors as key drivers of EXE’s potential success. For deeper insights into EQT’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which include 12 additional key investment tips and advanced financial metrics.
The Bernstein Strategic Decisions Conference provided a platform for in-depth discussions with industry leaders, allowing analysts to gather insights and identify promising investment opportunities. EQT and EXE emerged as standout picks due to their strategic positioning and growth potential in the natural gas sector.
Investors and market participants will be closely watching these companies as they continue to navigate the evolving energy landscape.
In other recent news, EQT Corporation reported first-quarter 2025 results that surpassed expectations, with adjusted earnings per share of $1.18 compared to the forecasted $0.98. Revenue also exceeded projections, reaching $2.24 billion against the expected $2.19 billion. The company generated over $1 billion in free cash flow during the quarter, attributing this to strong well performance and reduced capital expenditures. EQT has raised its 2025 production guidance to a range of 2,200-2,300 Bcfe and lowered its capital expenditure forecast by $25 million at the midpoint. Additionally, EQT announced an agreement to acquire assets from Olympus Energy for $1.8 billion, which includes 90,000 net acres in Southwest Pennsylvania. On the analyst front, UBS upgraded EQT’s stock rating to Buy, raising the price target to $64, citing improved operational performance and a positive outlook for natural gas. Bernstein also increased its price target for EQT to $74, maintaining an Outperform rating, following a strong earnings report that beat expectations on gas volumes and pricing. In another significant development, EQT has entered into a definitive agreement to acquire oil and gas properties from Olympus Energy, Hyperion Midstream, and Bow & Arrow Land Company, involving the issuance of over 26 million shares.
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