EQT Corporation price target lowered to $40 from $42 at BMO Capital

BMO Capital lowered the firm’s price target on EQT Corporation (EQT) to $40 from $42 but keeps an Outperform rating on the shares. The company’s Equitrans Midstream (ETRN) acquisition strengthens EQT over the long-term via lower operating costs, but meaningfully increases financial leverage while also being dilutive to most of its financial metrics, the analyst tells investors in a research note. The firm adds that while vertical integration, improved free cash flow conversion, and lower earnings volatility should improve valuation, this could take time.