JPMorgan analyst Arun Jayaram believes the separation of EQT Corporation's exploration and production and midstream segments is on track for completion during Q2, which should be a "catalyst to narrow the sum-of-the parts discount." After "re-running a lot of math," the analyst continues to see a "compelling idiosyncratic trading opportunity" in the stock given the discounted valuation, balance sheet strength, and attractive combination of growth and free cash flow generation. He keeps an Overweight rating on EQT with a $70 price target.

As previously reported, Wells Fargo downgraded EQT Corporation (EQT) to Equal Weight from Overweight with a price target of $37, down from $48. The firm acknowledges that the recently announced merger with Equitrans Midstream (ETRN) should position the company as a unique "Gas E&P + Midstream" entity, resembling a mini super-major. However, it is clear the E&P and midstream investor communities will take some time to embrace this integrated model, versus the prevailing preference for pure-play narratives. While Wells holds a long-term positive view on the transaction, the transaction adds debt, complicates the story, requires time to develop and adds execution risk in terms of integration and asset dispositions. Consequently, the firm believes the pending merger substantially increases the stock's equity risk premium over the next 12 months.

Wells Fargo analyst Roger Read downgraded EQT Corporation to Equal Weight from Overweight with a price target of $37, down from $48.