Mizuho reinstates EQT stock with Outperform rating on LNG export outlook
Investing.com
Published Jul 08, 2025 06:11AM ET
Investing.com - Mizuho has reinstated coverage on EQT Corp. (NYSE:EQT) with an Outperform rating and a $66.00 price target. According to InvestingPro data, the stock currently trades at $56.16, with analyst targets ranging from $36 to $74, suggesting significant potential upside from current levels.
The research firm cited potential growth in U.S. LNG exports, limited supply additions, and expected increased power demand from AI data centers as factors supporting higher natural gas prices over the next 12-18 months.
As the second-largest gas producer with a low break-even price, Mizuho believes EQT (ST:EQTAB) is positioned to benefit from these industry trends despite wavering investor sentiment on U.S. natural gas prices.
Mizuho expects EQT to see a 30-cent improvement to corporate differentials when firm sales contracts begin in 2027, potentially generating approximately $600 million of free cash flow uplift by 2028, beyond gains from higher Henry Hub prices.
The research firm noted that while EQT's Olympus acquisition was unexpected, it does not compromise the company's deleveraging outlook, and despite trading at a premium valuation, EQT still offers approximately 20% NAV upside.
In other recent news, EQT Corp has completed its acquisition of Olympus Energy assets, issuing over 25 million shares and paying approximately $440 million in cash as part of the transaction. This acquisition includes both oil and gas properties and related upstream and midstream assets. EQT also extended the maturity date of its revolving credit facility by one year, with the extension effective in 2025. In a separate development, EQT has agreed to settle a class action lawsuit related to its 2017 merger with Rice Energy for $167.5 million. This settlement marks a significant resolution after six years of litigation. Additionally, Barclays has initiated coverage on EQT with an Overweight rating, citing the company's strong exposure to natural gas and potential for sustainable growth. Analysts from Bernstein have also highlighted EQT as a top investment idea, pointing to its strong position in the U.S. natural gas market. Lastly, EQT announced the sale of Acumatica to Vista Equity Partners, a transaction expected to conclude in the third quarter of 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.