UK stocks are outperforming the U.S. and one CIO says they look 'very cheap'
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2024
0mins
Source: CNBC
- U.K. stocks performance: U.K. stocks are showing signs of improvement after years of underperformance, with the FTSE 100 and FTSE 250 indexes rising significantly in recent months.
- Valuations and comparisons: Chief investment officer highlights that U.K. companies are undervalued compared to other markets like the U.S., with examples such as Shell having lower price-to-earnings multiples.
- Reasons for stock increase: Factors contributing to the rise in U.K. stocks include political stability, increased investor interest due to perceived cheapness, and a rise in mergers and acquisitions activity.
- Mergers and acquisitions activity: Private equity group EQT's advanced talks to acquire Keywords Studios at a significant premium highlight the undervaluation of U.K. equities, particularly in the small and mid-cap segment.
- Market response: Keywords' shares surged over 60% following news of the potential acquisition, indicating market confidence in the valuation of U.K. equities.
Analyst Views on EQT
Wall Street analysts forecast EQT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EQT is 65.18 USD with a low forecast of 50.00 USD and a high forecast of 76.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
13 Buy
6 Hold
0 Sell
Moderate Buy
Current: 54.730
Low
50.00
Averages
65.18
High
76.00
Current: 54.730
Low
50.00
Averages
65.18
High
76.00
About EQT
EQT Corporation is a premier, vertically integrated American natural gas company with production and midstream operations focused on the Appalachian Basin. It has operations in Pennsylvania, West Virginia and Ohio. It owns or leases approximately 610,000 net acres in Pennsylvania. Most of the acreage is located in the southwestern region of the state, with the majority located in Greene and Washington Counties. It is developing the Marcellus Shale and Upper Devonian Shale in this area. It also owns or leases 405,000 net acres in West Virginia. Most of the acreage is located in the northwestern region of the state, with the majority located in Doddridge, Marion, Tyler and Wetzel Counties. It owns or leases 65,000 net acres in eastern Ohio and is developing the Utica Shale in Belmont County. It operates Utica wells throughout its Ohio acreage. The Marcellus Shale lies nearly a mile or more beneath the surface throughout much of Ohio, Pennsylvania, New York and West Virginia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
