KLR Group upgraded EQT Corp. (NYSE: EQT) from Accumulate to Buy with a price target of $99.00 (from $97.00).

Analyst John Gerdes commented, "We are upgrading EQT from Accumulate to Buy though lowering our target price $2 to $99 per share due to modest midstream margin compression. Our composite cost of capital values the company’s midstream subsidiary at ~17x next year’s cash generation (EQGP valuation). Our target price is anchored on a mid-cycle $4.25 NYMEX gas price. EQT corrected ~8% yesterday and now reflects 40%+ equity value upside, therefore meriting an upgrade to Buy.

Our ’15 production expectation of ~610 Bcfe is slightly above company guidance (595-605 Bcfe). Assuming the midpoint of ’15 guidance, our ’16 production growth guidance of ~17% is within preliminary company guidance (15%-20%)."

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Shares of EQT Corp. closed at $68.32 yesterday.