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On Monday, UBS analyst Josh Silverstein upgraded shares of EQT Corp. (NYSE:EQT), a natural gas producer with a market capitalization of $31 billion, from Neutral to Buy and increased the price target to $64.00, up from the previous target of $54.00. The stock has shown strong momentum, gaining nearly 40% over the past six months. Silverstein cited the company’s significantly improved operational performance following its acquisition of ETRN as a key factor for the upgrade. The analyst also pointed to a positive outlook for natural gas beyond 2026, which is expected to benefit EQT (ST:EQTAB). This optimism is supported by the company’s strong financial performance, with revenue growth of 39% and a healthy gross profit margin of 68% in the last twelve months. For deeper insights into EQT’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro.
According to Silverstein, EQT’s exposure to rising natural gas prices, along with plans to increase shareholder returns to 57% of free cash flow (FCF) by 2026, and the potential for mergers and acquisitions (M&A) as well as power supply contracting, are additional factors that could drive the company’s growth. These elements, he believes, are not currently reflected in EQT’s stock price.
The UBS analyst also noted that there is more than 3% upside potential to EQT’s free cash flow and production outlook stemming from each of these catalysts. This potential is based on the assumption that the market has not yet fully appreciated these positive developments in EQT’s strategy and market position.
Silverstein’s analysis suggests that the stock is currently priced at an implied $3.75 Henry Hub natural gas price, which is below the fiscal year 2026 strip price of $4.25. This discrepancy indicates that the stock may be undervalued given the company’s prospects and the anticipated higher natural gas prices in the coming years.
EQT Corp.’s strategic moves and the favorable market outlook for natural gas are expected to contribute to the company’s financial performance, as reflected in the upgraded rating and increased price target by UBS.
In other recent news, EQT Corporation reported first-quarter earnings for 2025 that surpassed expectations, with adjusted earnings per share of $1.18 compared to analyst estimates of $0.98. The company also reported revenue of $2.24 billion, exceeding the anticipated $2.19 billion. EQT generated over $1 billion in free cash flow during the quarter, attributed to strong well performance and lower-than-expected capital spending. Following these results, EQT raised its full-year production guidance by 25 Bcfe to a range of 2,200-2,300 Bcfe and reduced its expected capital expenditures by $25 million at the midpoint. In a strategic move, EQT announced an agreement to acquire assets from Olympus Energy for $1.8 billion, including 90,000 net acres adjacent to its core position in Southwest Pennsylvania. This acquisition involves the issuance of over 26 million shares of EQT’s common stock as part of the deal. Bernstein has raised the price target for EQT to $74, maintaining an Outperform rating, following the company’s strong first-quarter performance and improved financial outlook. The company’s efficiency was demonstrated by an EBITDA margin of $2.7 per mcf on production of 571 bcfe, with an average realized price of $3.77 per mcf against operating costs of $1.05 per mcf.
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