UPDATE: Deutsche Bank Upgrades EQT Corporation to Buy; Levered to the Recovery
Deutsche Bank raises its rating on EQT Corporation (NYSE: EQT) from Hold to Buy and introduces a $59 price target on shares.
Deutsche Bank says, "Natural Gas fundamentals are improving. A high quality asset base (current Marcellus program still generates a 25% IRR at $3.00/mmbtu prices), solid balance sheet (31% debt to cap) and go forward development plan all position EQT to win. Unlike financially levered or higher cost peers, modest increases in deferred natural gas prices hold significant promise for EQT's asset base. The key to value recognition is via acceleration of development, and with a funding strategy secured and the outlook for the commodity improving, we look for the equity to reflect more of this potential outcome.
EQT closed at $50.75 on Wednesday.
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