FBR Capital Downgrades EOG Resources (EOG) to Market Perform

October 23, 2013 7:29 AM EDT
Get Alerts EOG Hot Sheet
Price: $105.47 +0.27%

Rating Summary:
    26 Buy, 17 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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FBR Capital downgraded EOG Resources (NYSE: EOG) from Outperform to Market Perform with a price target of $200, saying structural gains priced in.

Analyst Rehan Rashid weighs in: "We have had a buy on the platform for more than two years and since about $100/share. Our rating was underpinned by expectations of continued improvements in Eagle Ford resource potential and productivity. Though we expect continued improvements toward a 15% recovery factor and improved IPs (reflected by our 28% production growth estimate for 2014 and $336/share current 3P NAV), we feel that the low-hanging geologic and productivity gains have been priced in and risk/reward from these levels seems balanced. As such, we are downgrading to Market Perform and are maintaining our 12-month $200/share price target. The stock currently trades at 5.6x 2014 TEV multiple and 55% of 3P NAV. Our target is based on about 60% of 3P NAV and 6.0x 2014 TEV multiples."

For an analyst ratings summary and ratings history on EOG Resources click here. For more ratings news on EOG Resources click here.

Shares of EOG Resources closed at $185.15 yesterday.

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