EQT Corporation price target lowered to $42 from $50 at Jefferies

Jefferies lowered the firm’s price target on EQT Corporation (EQT) to $42 from $50 and keeps a Buy rating on the shares. The firm notes EQT’s announcement to acquire Equitrans Midstream (ETRN) led to a negative market reaction, which Jefferies believes was largely tied to vertical M&A surprise, higher leverage/debt reduction timing risk, complexity, and likely FTC review. Improved cost structure, lowering earnings volatility makes sense, but given complexity investors will likely need to see it play out with deleveraging being the first step, the firm argues.