UPDATE: Morgan Stanley Initiates EQT Corporation at Overweight on Multiple Positive Factors
In a report published Thursday, Morgan Stanley analyst Drew Venker initiated coverage on EQT Corporation (NYSE: EQT) with an Overweight rating and $100.00 price target.
In the report, Morgan Stanley noted, “Investors pay only for next year's growth: EQT trades in line with the group on 2015e EBITDA. We see a higher probability that the growth outlook improves than that it is unchanged. EQT will grow at 20-30% annually for 5-10 years, by our estimate, driving a discounted valuation by 2016. Trades at a 2x multiple discount (2014e EV/EBITDA) vs. its Marcellus-focused peers despite a similar growth profile (3-year CAGR 30% vs. peers at 34%). One of the most shareholder-friendly management teams in the industry; continuously seeks ways to increase shareholder value.”
EQT Corporation closed on Wednesday at $81.77.
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