EQT (EQT – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Devin McDermott from Morgan Stanley reiterated a Buy rating on the stock and has a $63.00 price target.
Devin McDermott has given his Buy rating due to a combination of factors that highlight EQT’s strong financial position and growth prospects. The company has successfully transformed its business over the past few years, significantly increasing production capacity while reducing costs, which has doubled its free cash flow. This transformation has positioned EQT at the lower end of the US gas cost curve, enhancing its competitive edge.
Additionally, EQT’s management has outlined a promising outlook for the future, with expectations of rising demand from LNG and power sectors, supporting higher Henry Hub prices. The company aims to increase the percentage of cash flow from stable or non-commodity sources, which would contribute to more resilient free cash flow and potential for multiple expansion. These factors, along with the potential for improved corporate price realization and reduced maintenance capital expenditures, underpin McDermott’s confidence in EQT’s ability to deliver value to shareholders.
In another report released on March 18, Wells Fargo also maintained a Buy rating on the stock with a $58.00 price target.
EQT’s price has also changed dramatically for the past six months – from $34.730 to $53.600, which is a 54.33% increase.
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