BofA Securities raises EQT stock price target to $80 on datacenter demand

Investing.com - BofA Securities raised its price target on EQT Corp. (NYSE:EQT) to $80.00 from $63.00 on Friday, while maintaining a Buy rating on the natural gas producer. The company, currently trading at $52.05, has demonstrated strong performance with a 60.3% return over the past year and maintains a healthy gross profit margin of 74.7%.

The price target increase reflects BofA’s view that EQT (ST:EQTAB) is "uniquely equipped" with scale and midstream infrastructure to meet the intensive supply demands of large datacenters while providing logistics support. According to InvestingPro data, analysts are largely bullish on the stock, with an average consensus recommendation of 1.72 (Strong Buy).

BofA projects 1.5 billion cubic feet per day of dry gas growth from 2027 to 2032, which it estimates will drive $1.0 billion of cash flow and $750 million of free cash flow after the production ramp, adding approximately $10 per share in value. With an EV/EBITDA ratio of 8.9x and operating with moderate debt levels, EQT shows promising financial metrics. Get access to 12 additional exclusive InvestingPro Tips and comprehensive valuation analysis in our Pro Research Report.

The firm also attributes $3 per share in additional value to midstream growth, while lowering its discount rate from 8.5% to 8.0% based on visibility toward EQT’s target debt of $5.5 billion (less than 1.0x net debt to EBITDA) by mid-2026.

These factors collectively contribute to the $17 per share increase in BofA’s price objective for the natural gas company.

In other recent news, EQT Corporation reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $0.45, exceeding the forecast of $0.42. Revenue also outperformed projections, reaching $2.56 billion compared to the anticipated $1.76 billion. Despite these strong financial results, EQT’s stock experienced a decline in after-hours trading. In addition to the earnings announcement, Melius Research initiated coverage on EQT with a Buy rating, highlighting its dominance in the Appalachian Basin. The firm set a price target of $64.00, citing the company’s operations in the Marcellus and Utica shales. These developments reflect EQT’s significant position in the gas industry and recent performance.

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