EQT is Morgan Stanley's Top Pick - Mar 28
Posted: Tue Mar 28, 2023 2:31 pm
Note below from my friends at Morgan Stanley 3-28-2023
"Stay constructive, but selective. With a noisy 4Q results season comfortably
behind us,expectations are now more reasonable for 2023 capex & production.
Looking ahead, deflation could start to become a tailwind for
some US producers by the 2H23- especially if private activity moderates. In a
more uncertain macro environment, we retain our defensive bias and prefer
names with scale, strong balance sheets and differentiated rate of change (HES,
EOG, XOM) and/or outsized buyback capacity (MRO,FANG in the US and SU &
CVE in Canada). Within gas E&Ps, EQT remains our preferred stock.
Very interesting that a "gasser" would be their Top Pick.
We will be publishing an updated profile on FANG this week.
"Stay constructive, but selective. With a noisy 4Q results season comfortably
behind us,expectations are now more reasonable for 2023 capex & production.
Looking ahead, deflation could start to become a tailwind for
some US producers by the 2H23- especially if private activity moderates. In a
more uncertain macro environment, we retain our defensive bias and prefer
names with scale, strong balance sheets and differentiated rate of change (HES,
EOG, XOM) and/or outsized buyback capacity (MRO,FANG in the US and SU &
CVE in Canada). Within gas E&Ps, EQT remains our preferred stock.
Very interesting that a "gasser" would be their Top Pick.
We will be publishing an updated profile on FANG this week.