EQT stock price target cut to $57 by Stephens analyst

Published 15/04/2025, 12:48
EQT stock price target cut to $57 by Stephens analyst

Tuesday, Stephens analysts adjusted the price target on EQT Corp. (NYSE:EQT) shares, decreasing it to $57.00 from the previous target of $59.00, while maintaining an Overweight rating on the stock. With EQT (ST:EQTAB) currently trading at $49.97, the new target still implies significant upside potential. According to InvestingPro data, analyst targets for EQT range from $35 to $73, with 10 analysts recently revising their earnings estimates upward.

The revised estimates suggest a potential 7% miss in first-quarter 2025 cash flow per share (CFPS) based on the guidance’s midpoint. However, the analysts noted that their estimates might be on the conservative side since production that had been previously curtailed was restored during the quarter.

Stephens analysts anticipate that EQT Corp. will report a post-dividend free cash flow (FCF) of $565 million for the first quarter of 2025. They also expect that the company increased its cash on hand during this period, as reducing net debt was a priority.

The upcoming conference call is expected to shed light on several key topics. Analysts predict that the discussion will center around the natural gas macro environment, including the impact of tariffs, the company’s free cash flow priorities, and potential agreements related to liquefied natural gas (LNG) and power demand.

In their report, Stephens analysts explained the rationale behind the price target reduction, stating that it was based on updated NYMEX strip prices, which also led to a lower net asset value (NAV) per share estimate for EQT Corp. The analysts will continue to monitor the company’s performance and market influences that could affect its valuation.

In other recent news, EQT Corporation has been at the center of several significant developments. The company successfully completed its private exchange offers and consent solicitations, involving the exchange of approximately $3.37 billion in outstanding notes for new notes and cash. This strategic financial maneuver is aimed at consolidating EQT’s financial obligations and streamlining its capital structure. In addition, EQT Infrastructure VI fund announced the acquisition of Eagle Railcar Services, a move expected to enhance growth and expand service offerings in the railcar repair and maintenance sector.

EQT Corp. also received an upgrade from TD Cowen, with the stock rating improved from Hold to Buy and a new price target set at $54. This upgrade reflects favorable conditions in the natural gas sector, as analysts anticipate a 12% free cash flow yield for EQT by 2026. Similarly, Mizuho (NYSE:MFG) Securities raised EQT’s price target to $60, maintaining an Outperform rating due to expected outperformance in the first quarter of 2025, driven by strong natural gas pricing. These recent analyst adjustments underscore confidence in EQT’s strategic initiatives and market positioning.

Amid these developments, EQT’s ongoing efforts to leverage synergies from its transaction with Equitrans Midstream (NYSE:ETRN) Corporation are noteworthy, as the company aims to meet its post-transaction deleveraging targets. Management’s approach to cash returns through buybacks remains opportunistic, aligning with the company’s broader strategic goals. These activities highlight EQT’s focus on enhancing its financial health and operational capabilities in the evolving energy landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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