Analysts have modestly raised their price target for EQT, increasing the fair value estimate from $62.80 to $63.63. This reflects cautious optimism around the company’s low-cost structure, growing demand for U.S. natural gas, and continued operational execution.

Analyst Commentary

Recent street research shows a range of opinions among analysts evaluating EQT's prospects. While optimism remains around the company's capacity for growth and continued value creation, several market headwinds have been noted.

Bullish Takeaways

• Bullish analysts highlight EQT's low-cost, vertically integrated structure and view it as a key strategic advantage that supports long-term profitability and positions the company to outperform in a shifting energy landscape.
• There is growing expectation for significant increases in U.S. natural gas demand, especially from LNG exports and higher electricity needs from data centers. This may strengthen the industry's price floor over the next decade.
• Recent price target increases reflect confidence in EQT's ability to deliver robust free cash flow, with projections topping $700 million at natural gas prices above $4. This is supported by a deep inventory and high-return project pipeline.
• The company's infrastructure and investment-grade rating are seen as supportive of further upstream and midstream growth. There is ample runway for expansion and execution of accretive projects.

Bearish Takeaways

• Bearish analysts caution that oversupply conditions may persist, weighing on Henry Hub natural gas prices and capping near-term upside. Some expect weak fundamentals for gas-exposed names through at least 2026.
• Several firms have trimmed price targets modestly to reflect recent commodity price movements and macroeconomic uncertainties. They warn that industry lessons on supply discipline remain unheeded.
• Questions remain around the pace of EBITDA and free cash flow growth, as well as the timeline for debt reduction and integration of recent acquisitions, given capital expenditures and operational execution risks.
• Not all analysts are uniformly bullish on future price improvements, signaling that investor sentiment and price targets could remain sensitive to changes in gas demand outlook or delays in anticipated structural trends.

What's in the News

• Wells Fargo initiated coverage of EQT Corporation with an Overweight rating and a $68 price target. The firm cited growing U.S. gas demand from LNG exports and data centers, and noted potential structural shifts that could benefit equities (Wells Fargo).
• EQT is in discussions with NextDecade to secure liquefied natural gas supply from the Rio Grande LNG facility in Texas. This agreement could further expand EQT's export capabilities (Bloomberg).
• The company signed a 20-year agreement with Sempra Infrastructure for 2 million tonnes per annum of LNG offtake from the upcoming Port Arthur LNG Phase 2 project in Texas.
• EQT's Board of Directors approved a five percent increase to its regular quarterly cash dividend, raising it to $0.66 per share on an annualized basis.
• EQT secured 1.0 million tonnes per annum of LNG liquefaction capacity under a 20-year sale and purchase agreement with Commonwealth LNG, supporting its global expansion strategy.

Valuation Changes

• Fair Value Estimate: Increased marginally from $62.80 to $63.63. This reflects a modest upward revision in overall valuation.
• Discount Rate: Edged up slightly from 7.02% to 7.03%. This indicates a very minor adjustment in the company’s risk profile.
• Revenue Growth Forecast: Ticked down from 12.73% to 12.68%. This suggests a slightly more conservative outlook for top-line expansion.
• Net Profit Margin: Declined from 35.73% to 33.44%. This marks a moderate reduction in expected profitability margins.
• Future P/E Ratio: Rose from 15.10x to 16.37x. This points to a modest increase in anticipated valuation multiples.