Ahead of the fourth-quarter results, we are initiating coverage on EQT Corporation (EQT) with an Underperform recommendation and a target price of $39.
The company continues to deliver consistent production growth on the back of its E&P segment. It estimates a 20% hike in gas sales this year, supported by an attractive Appalachian resource potential and an extensive drilling program. Given our cautious outlook for natural gas prices in the near to medium term, we believe these positives may fail to materialize.
Additionally, the company’s capital budget relies heavily on future cash flows, which is subject to a number of variables. Our target price is $39.00 per share.Zacks Investment Research
