EQT Corp. ‘Potential to be Fully Realized in 2023’ – BMO Capital Markets

By Sam Boughedda

BMO Capital Markets upgraded shares of EQT Corp. (NYSE:) to Outperform from Market Perform, increasing the price target to $65 from $50 in a note Monday.

In the research piece, an analyst declared the company’s potential will be fully realized in 2023.

“EQT should benefit from a significant step-up in FCF next year as hedges roll. We expect gas prices to remain strong, and are raising our 2023 and long-term price forecasts,” wrote the analyst.

EQT shares opened lower on Monday, but have regained the initial losses and more, currently up 1.5% at the time of writing.

“Shares are attractively valued with 2023 EV/EBITDA and P/E near the low-end of peers, while 30% FCF yield is at the high-end,” the analyst added. “Management has successfully transformed EQT with cost structure, cash margins, capital efficiency, leverage, and core inventory now competitive, with enhanced performance fully realized in 2023.”

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