Jefferies Reiterates Buy on EQT (EQT) Following Strong Start for EQGP

Jefferies reiterates their Buy rating on EQT Corp. (NYSE: EQT), and raised the price target to $113.00 (from $102.00) following a strong start for EQGP. Jefferies values EQT’s EQGP units at $6 B (applying a 25% liquidity discount to the current market value).

Jefferies analyst, Jonathan Wolff, commented on the raised price target, saying, "We had previously valued EQT’s EQM shares at market value for EQM units (less a 20% liquidity discount) and the GP at 35x 2017 EBITDA of $85MM. We felt this valuation (totaling ~$4.5 B) was conservative, and this has been reinforced by the pricing of the EQGP IPO. We now value the EQGP units at $6 B, applying a 25% liquidity discount to the current market price of EQGP shares. We raise on PT to $113 based on this new value and the cash received by EQT (~$600 MM) in the IPO."

For an analyst ratings summary and ratings history on EQT Corp. click here. For more ratings news on EQT Corp. click here.

Shares of EQT Corp. closed at $91.95 yesterday.

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