William Blair initiates EQT stock with Outperform rating, citing low-cost structure

Published 14/10/2025, 21:56
William Blair initiates EQT stock with Outperform rating, citing low-cost structure

Investing.com - William Blair initiated coverage on EQT Corp. (NYSE:EQT) with an Outperform rating on Tuesday. The company, currently valued at $33.26 billion, is trading at $53.29 per share, near its InvestingPro Fair Value estimate.

The research firm highlighted EQT’s position as the only domestic, large-scale, vertically integrated natural gas producer operating with a low-cost structure and decades of core inventory. The company’s efficiency is reflected in its impressive 74.74% gross profit margin and substantial free cash flow of $2.12 billion over the last twelve months. InvestingPro analysis reveals 10+ additional key insights about EQT’s financial health and growth prospects.

William Blair noted that the company’s infrastructure and investment-grade rating position it to generate free cash flow exceeding $700 million at natural gas prices above $4 per MMBtu.

The firm emphasized EQT’s ability to advance both upstream and midstream growth through what it described as a low-risk, high-return project pipeline.

EQT stands out in the natural gas sector due to its vertical integration model, which William Blair views as a competitive advantage in the current market environment.

In other recent news, EQT Corp announced an expected gain of $136 million on derivatives for the third quarter of 2025, with net cash settlements received totaling $75 million. The company detailed that these settlements included $59 million from NYMEX natural gas hedge positions and $16 million from basis and liquids hedge positions. Additionally, EQT completed the sale of a seven-asset truck terminal portfolio across the United States, which spans 89 acres and includes logistics facilities in several key locations.

EQT also completed a $705.8 million public offering of Waystar shares, selling approximately 7.8 million shares and retaining ownership of about 24.9 million shares. On the analyst front, Jefferies lowered its price target for EQT from $70 to $68, while maintaining a Buy rating, citing expected operational execution in the third quarter. Bernstein SocGen Group reiterated its Outperform rating on EQT, setting a price target of $72 and expressing a positive outlook for Appalachian gas prices. These developments highlight EQT’s recent strategic and financial activities.

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