EQT Corporation downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded EQT Corporation (EQT) to Neutral from Overweight with a price target of $37, down from $39. While management outlined $5B of deleveraging within 12-18 months of the Equitrans Midstream (ETRN) transaction close through free cash flow generation and asset disposals, the deal will likely push any cash return to shareholders “to the right” until the company reaches its $7.5 B long-term debt target, the analyst tells investors in a research note. The firm also senses that the buy-side is getting more constructive on the 2025 natural gas supply-demand picture, and worries that the timing of the deal could result in funds flow away from the stock “given the typical volatility and noise” that accompanies large-scale acquisitions.