EQT Corporation (EQT), mcap=$15bn, price $40.1 vs. $27.1

Pitch: A bet on US natural gas stocks being cashflow machines over the next several years, due to US E&Ps accommodating Europe’s migration to friendly supply sources. EQT trades only slightly above pre-Ukraine war prices.

Valuation: $EQT $27/share price implies only $3.1 gas prices and zero terminal value after 15 years. A $3.5 gas price results in a $40+/share target. Peer comparison results in a similar valuation of $39/share.

Exp. gain: 50%

Full EQT write-up (free guest account required):
https://valueinvestorsclub.com/idea/EQT_CORP/9919257544

 

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