EQT stock rating upgraded to Buy at TD Cowen, $54 target

On Tuesday, EQT Corp. (NYSE:EQT), a natural gas producer with a market capitalization of $28.26 billion, received an upgrade in its stock rating from Hold to Buy by analysts at TD Cowen, with a new price target set at $54.00. According to InvestingPro data, this aligns with broader analyst optimism, as six analysts have recently revised their earnings estimates upward. The upgrade comes as the firm shifts its tactical preference towards natural gas, following tariffs introduced on April 2nd.

TD Cowen's analysts believe that the tariffs will create favorable conditions for the natural gas sector. They expect these changes to result in lower associated volumes in the year 2026, coupled with demand growth from liquefied natural gas (LNG) and power sectors. These factors are anticipated to support robust pricing for natural gas. InvestingPro analysis indicates that EQT (ST:EQTAB) is well-positioned to capitalize on these trends, with a strong gross profit margin of 58.1% and expected sales growth in the current year.

The analysts project that these industry tailwinds will benefit EQT Corp., leading to a forecasted 12% free cash flow (FCF) yield for the company in 2026. Currently trading at $47.31, EQT appears overvalued according to InvestingPro's Fair Value model, though the company's strong fundamentals and recent performance, including a 28.5% price return over the past six months, support TD Cowen's optimistic outlook.

EQT Corp., which is involved in the production and sale of natural gas, is thus positioned to capitalize on the expected growth and demand in the natural gas market. The upgrade by TD Cowen reflects their confidence in the company's ability to leverage the upcoming market dynamics for natural gas.

Investors and market watchers will be keeping a close eye on EQT Corp.'s performance, particularly in light of the recent industry developments and the positive assessment from TD Cowen. With the new Buy rating and a price target of $54.00, EQT's stock could see increased interest from the investment community.

In other recent news, EQT Corporation has completed its private exchange offers and consent solicitations, involving the exchange of notes from its subsidiary, EQM Midstream Partners, for new EQT-issued notes and cash. This transaction, which retired approximately $3.37 billion in notes, aims to streamline EQT's financial obligations and capital structure. Additionally, EQT Infrastructure VI fund announced the acquisition of Eagle Railcar Services to enhance growth in the railcar repair and maintenance sector, with the deal expected to close in the second quarter of 2025.

Mizuho (NYSE:MFG) Securities has raised EQT's stock price target to $60, maintaining an Outperform rating, driven by anticipated earnings outperformance due to strong natural gas pricing. Meanwhile, UBS analyst Josh Silverstein has maintained a Neutral rating on EQT, with a $58 price target, highlighting the company's focus on debt reduction and potential power contracting initiatives. Furthermore, EQT is involved in a joint cash offer with First Kraft for Sweden-based Fortnox, valuing the company at approximately 55 billion crowns.

These developments reflect EQT's strategic maneuvers in financial management, acquisitions, and market positioning, as it continues to focus on growth and operational efficiency.

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