In a report released today, Kalei Akamine from Bank of America Securities maintained a Buy rating on EQT, with a price target of $63.00.
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Kalei Akamine has given his Buy rating due to a combination of factors that highlight EQT’s strong financial and operational performance. The company’s recent acquisition of Olympus has positively impacted its cost structure, leading to significant operational efficiencies and improved capital efficiency. This acquisition has allowed EQT to maintain its capital expenditure guidance while increasing its drilling activities, showcasing its ability to execute planned activities with fewer capital dollars.
Moreover, EQT’s strategic control over its production volumes through vertical integration has minimized the risk of production shortfalls. The company has also secured new supply agreements, enhancing its potential for volume growth and free cash flow generation. These agreements, combined with EQT’s preference in shipping, provide visibility on substantial volume growth, estimated to yield significant incremental free cash flow. These factors collectively support Akamine’s optimistic outlook and justify the Buy rating for EQT’s stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $68.00 price target.