Headquartered in Pittsburgh, Pennsylvania, EQT Corporation (EQT) boasts a market cap of $18.5 billion and is the largest natural gas (NGM24) producer in the U.S. Its operations are primarily centered in the Appalachian Basin, covering Ohio, Pennsylvania, and West Virginia.
Shares of EQT have lagged behind the broader market over the past year. While EQT has surged 15.7% over this time frame, the broader S&P 500 Index ($SPX) is up 26.6%. The stock has soared 8.4% in 2024 alone, lower than SPX’s YTD return of 11.3%.
Zooming in further, EQT has also underperformed the S&P Oil & Gas Exploration & Production SPDR (XOP). The exchange-traded fund has gained 24.5% over the past year, outperforming EQT’s modest return for the period.
EQT stock lagged behind its peers and the broader market over the past year due to rising interest rates, market volatility, and industry-specific challenges like fluctuating natural gas prices and regulatory changes. However, shares of the oil giant rose following its better-than-expected Q1 earnings results.
For the current fiscal year, ending in December, analysts expect EQT’s EPS to decline 55% year over year to $1.03. However, the company’s earnings surprise history is solid. It beat or matched the consensus estimate in each of the last four quarters.
EQT’s stock has a consensus “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 10 rate it as a "Strong Buy," one suggests a "Moderate Buy," and 10 recommend a "Hold."
This configuration is less bullish than three months before with 14 analysts advising a "Strong Buy."
On May 13, BMO Capital analyst Phillip Jungwirth maintained an “Outperform” rating on EQT and raised the price target from $40 to $47. The analyst praised EQT's compelling story in the E&P space and highlighted the stock's value post-Equitrans acquisition, enhanced cost structure, artificial intelligence (AI) initiatives, and strategic debt reduction via asset sales and strong free cash flow.
The mean price target of $44.27 suggests a 5.6% premium to EQT from current levels. The Street-high target of $54 represents an upside potential of 28.8%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
