EQT (EQT – Research Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst David Deckelbaum from TD Cowen upgraded the rating on the stock to a Buy and gave it a $54.00 price target.
David Deckelbaum has given his Buy rating due to a combination of factors that favor EQT’s position in the natural gas market. The recent implementation of tariffs has shifted the focus towards natural gas, with expectations of reduced associated gas volumes and increased demand from LNG and power sectors. This scenario is anticipated to support strong pricing and a 12% free cash flow yield for EQT by 2026.
Additionally, EQT’s strategic deleveraging efforts and efficiency improvements are set to enhance capital returns. As the largest natural gas producer, EQT is well-positioned to capitalize on growing power demand, especially with its expansion along the MVP to the Southeast. The company’s contracts for a significant portion of its gas volumes to be priced at a premium further highlight its potential for margin improvement, making it an attractive investment opportunity.
According to TipRanks, Deckelbaum is an analyst with an average return of -6.5% and a 33.70% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as Devon Energy, EQT, and Diamondback.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $57.00 price target.