Bernstein analyst Jean Ann Salisbury upgraded EQT Corporation to Market Perform from Underperform with a price target of $34, up from $27. The firm says the Marcellus production cuts help in-basin pricing. Basis outlooks have been improving since these cuts were announced, and it believes the upcoming earnings season may result in further cuts, as they were well received by investors the first time. Second, Bernstein notes that the number 1 topic among investors in the last few months is AI/data center demand, which worries the firm with its EQT underperform. This is less around the data center demand being a massive driver of gas price; Bernstein still expects to be in the midcycle $3.50/mcf range that it thinks is already priced into most E&Ps, including EQT. However, the location of much of the demand, specifically Ohio and Northern Virginia, could have impacts on planks and above, in basin pricing and MVP drag, over a long period of time.
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