EQT stock rating reiterated as Overweight by JPMorgan

EQT Corp. has received strong analyst backing, with JPMorgan reiterating an Overweight rating and Citi, UBS, and Jefferies maintaining Buy ratings, the latter raising its price target to $70. This confidence is driven by EQT securing significant long-term natural gas supply agreements, including providing 1.5 Bcf/d for two new Pennsylvania power projects and a substantial deal for the Homer City Energy Campus, notably supporting the conversion of the Bruce Mansfield coal plant. These strategic agreements, alongside strong Q1 results and an anticipated $720 million derivative gain for Q2 2025, reinforce EQT's growth trajectory and market position as a leading natural gas producer.

Analysis

EQT Corp. (NYSE:EQT) has garnered significant positive analyst sentiment, underpinned by strategic long-term supply agreements that enhance its revenue visibility. JPMorgan reiterated an Overweight rating, while Citi and UBS maintained Buy ratings, with UBS setting a $64 price target. Jefferies further underscored this confidence by raising its price target to $70, citing the recent Olympus Energy acquisition and strong first-quarter results. The core driver for this optimism is EQT's success in securing major contracts, including supplying approximately 1.5 billion cubic feet per day (Bcf/d) to two new Pennsylvania power projects. A key component of this is the 800 million cubic feet per day (MMcf/d) agreement for the conversion of the Bruce Mansfield coal plant to a natural gas facility, positioning EQT as a critical player in the regional energy transition. Additionally, the company secured a landmark deal to supply up to 665,000 MMBTUs daily to the Homer City Energy Campus. These developments, coupled with a stock performance showing a 64.81% one-year return and an expected $720 million gain on derivatives for Q2 2025, solidify the company's robust operational and financial outlook.

Key Decisions for Investors

• Given the strong consensus from analysts and the securing of significant, long-term demand through major supply contracts, investors should view EQT's fundamental outlook as substantially de-risked and its growth trajectory reinforced.
• Monitor the execution and financial impact of the new Pennsylvania power plant agreements, particularly the Bruce Mansfield coal-to-gas conversion, as these projects are now primary catalysts for future EBITDA and cash flow.
• Considering the stock is trading near its 52-week high after a 64.81% annual gain, investors should be mindful that significant positive expectations are already reflected in the price, warranting careful consideration of entry points.