Canaccord Genuity Reiterates a 'Sell' on EQT Corp. (EQT); Unwarranted Premium
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Price: $53.89 +0.47%
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
35 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Canaccord Genuity reiterates a 'Sell' on EQT Corp. (NYSE: EQT) price target of $45.00.
Analyst, John Gerdes, said, "We reiterate our rating, as we believe EQT’s ~70% premium (’12E EBITDA) to the group is unwarranted given its ~15% lower expected CFPS growth (’11-’13E). As we believe EQT should spend ~90% beyond cash flow in 2012 (versus the group’s ~40% outspend), we see little potential to accelerate value creation."
"The bull case is that EQT is worth more in the hands of a better-capitalized entity. However, we believe EQT reflects a 10-20% takeout premium that is unlikely to materialize due to infrastructure limitations. Additionally, we remain skeptical of the idea that EQT can garner a higher valuation for its midstream assets in an MLP."
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 $48.80 yesterday.
Analyst, John Gerdes, said, "We reiterate our rating, as we believe EQT’s ~70% premium (’12E EBITDA) to the group is unwarranted given its ~15% lower expected CFPS growth (’11-’13E). As we believe EQT should spend ~90% beyond cash flow in 2012 (versus the group’s ~40% outspend), we see little potential to accelerate value creation."
"The bull case is that EQT is worth more in the hands of a better-capitalized entity. However, we believe EQT reflects a 10-20% takeout premium that is unlikely to materialize due to infrastructure limitations. Additionally, we remain skeptical of the idea that EQT can garner a higher valuation for its midstream assets in an MLP."
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 $48.80 yesterday.
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