EQT (EQT) Could Be 26% Undervalued On New Long Term Gas Supply Deals

EQT (EQT) is drawing attention after outlining long-term natural gas supply deals that connect its production to rising electricity use and LNG demand. These contracts frame how investors might think about the stock’s demand visibility.

See our latest analysis for EQT.

Set against these new long-term contracts, EQT’s recent share price has been mixed, with a 7 day share price return of 3.73% but a 90 day share price return that declined 12.6%, while the 5 year total shareholder return of 209.12% points to a very different longer term experience for investors.

If the EQT story has you watching energy demand trends, it can also be useful to see which other producers stand out in today’s market using the 90 nuclear energy infrastructure stocks

EQT has secured new long-term gas contracts, but its recent share price performance has been choppy and uneven. Is most of the easier potential gain already reflected in the stock, or does the current valuation still leave meaningful upside on the table?

Most Popular Narrative: 26.2% Undervalued

The most followed EQT narrative sees fair value at about $70.04 per share compared with a last close of $51.66, framing the stock as materially undervalued on that view.

Execution on a $1 billion pipeline of organic, low-risk, fee-based midstream and infrastructure projects with minimum volume commitments and index-plus pricing creates stable, annuity-like cash flows, lowering business volatility and raising the durability of free cash flow and earnings.

Read the complete narrative.

Want to see what underpins that $70 fair value for EQT? The narrative leans on moderate growth, firm margins, and a future earnings multiple that assumes investors pay up for consistency.

Result: Fair Value of $70.04 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, EQT’s narrative still faces real pressure from potential regulatory shifts on emissions and the risk that long term gas demand from data centers may disappoint.

Find out about the key risks to this EQT narrative.

Next Steps

If this EQT narrative leaves you unsure which side you lean toward, take action while the data is fresh and test the story against the 5 key rewards

Looking for more EQT investment ideas to act on now?

Before you move on, lock in what you have learned from EQT and keep the momentum up by lining up a few fresh ideas that could broaden your watchlist.

• Scan for potential value opportunities that combine quality and attractive pricing using the 49 high quality undervalued stocks
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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