NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Jefferies lifts EQT Corp stock PT, reflecting improved 2025 production outlook

Published 05/06/2024, 04:14 am
EQT
-

On Tuesday, an analyst from Jefferies revised the price target for EQT Corp. (NYSE:EQT (ST:EQTAB)), a natural gas producer, increasing it to $48.00 from the previous $43.00. The firm maintained a Buy rating on the stock.

The adjustment follows a review of EQT's recent non-operated asset transaction with Equinor, its first-quarter results for 2024, and updated guidance for the year. Jefferies' updated model for EQT anticipates total sales volume and capital expenditures for 2024 to be around 5.8 billion cubic feet equivalent per day (bcfepd) and approximately $2.3 billion respectively.

The analyst's expectations for EQT's contribution from Energy Transfer (NYSE:ET) LP (ETRN) starting in the fourth quarter of 2024 remain the same. Additionally, the firm has revised its production estimates for 2025 upwards, taking into account the non-cash consideration from the recent asset sale.

In other recent news, EQT Corp. has been the focus of multiple analyst updates following robust earnings and strategic moves. Evercore ISI increased EQT's price target to $50.00, noting the company's efficiency gains and the potential benefits of its forthcoming ETRN acquisition. BMO Capital Markets also raised its price target to $47, citing EQT's improved cost structure and a clear strategy to reduce debt through asset sales and strong free cash flow.

Piper Sandler followed suit, raising its price target to $46.00 after EQT's positive Q1 2024 results and revised guidance. Similarly, Mizuho Securities adjusted its price target from $40 to $43 following EQT's strong earnings report for Q1 2024 and its promising inventory of natural gas in the Marcellus Shale.

In a significant move in the telecommunications industry, EQT is set to acquire Lumos in a joint venture with T-Mobile US (NASDAQ:TMUS) for approximately $950 million. This acquisition is expected to expand Lumos's reach to 3.5 million households by the end of 2028. These recent developments underscore EQT's strategic initiatives and operational efficiencies, which analysts believe will expand the company's economically viable future locations.

InvestingPro Insights

Following the positive momentum from analyst upgrades, EQT Corp. (NYSE:EQT) is also under the lens of InvestingPro's real-time data and analytics. With a current market capitalization of $17.89 billion, EQT is trading at a price-to-earnings (P/E) ratio of 26.08, which adjusts to a slightly lower 23.18 when looking at the last twelve months as of Q1 2024. This valuation places the company in a competitive position within the natural gas production sector.

The company's revenue, however, has seen a significant decline, with a -61.08% change over the last twelve months as of Q1 2024. Despite this, EQT has maintained a strong gross profit margin of 46.27%, showcasing its ability to manage costs effectively in a challenging environment. Additionally, the company's operating income margin stands at an impressive 24.31%, reflecting operational efficiency.

InvestingPro Tips highlight that EQT's stock generally trades with low price volatility, which may appeal to investors seeking stability in their portfolios. Moreover, analysts predict the company will be profitable this year, which is supported by the fact that EQT has been profitable over the last twelve months. For investors looking for deeper insights, there are seven additional InvestingPro Tips available, which can be found at https://www.investing.com/pro/EQT. These tips provide a comprehensive understanding of EQT's financial health and market position.

To gain access to these valuable insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This exclusive offer can help investors make informed decisions backed by the latest data and expert analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.