EQT's LNG Deal Sparks 25% Undervaluation Prediction

EQT (EQT) is back in focus after securing a long-term liquefied natural gas deal with UAB Ignitis. The contract, which spans from 2027 to 2036, has led some analysts to suggest that EQT's share price may be undervalued by as much as 25%.

The LNG deal comes at a time when EQT's share price has eased somewhat, with a 7-day return of 4.35% and a 30-day return of 5.42%. Despite this, the company's 1-year total shareholder return stands at just 0.90%, building on a 5-year total shareholder return of 147.11%.

Bulls see EQT's Ignitis win as proof that long-term contracts and solid earnings power are not fully reflected in the current price. Bears, however, point to recent share softness and commodity risk as potential concerns.