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BMO Capital Markets upgraded shares of EQT Corp. (NYSE:EQT) 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.”
