EQT Corporation price target lowered to $40 from $43 at Scotiabank

Scotiabank analyst Cameron Bean lowered the firm’s price target on EQT Corporation (EQT) to $40 from $43 and keeps a Sector Perform rating on the shares following the company’s announcement of an all-stock deal to acquire Equitrans Midstream (ETRN). The share price “took a beating in the wake of its announcement” and the reaction is “not surprising” given that the deal is dilutive on headline metrics and adds significant debt, the analyst tells investors. While the firm suspects the Equitrans deal could be better for EQT than the initial market reaction suggests, it is staying on the sidelines at least until the firm analyzes the deal in more detail.