BofA Securities Downgrades EOG Resources (EOG) to Neutral

BofA Securities analyst Noah Hungness downgraded EOG Resources (NYSE: EOG) from Buy to Neutral with a price target of $144.00 (from $151.00).

The analyst comments "This name outperformed in 2H24 as investors moved away from high beta to high quality, finding safety in EOG’s firm balance sheet, deep Permian inventory and an unmatched track record of oilfield execution that goes back more than 15 years. We believe that investor sentiment has turned on EOG’s non-Permian assets, with strong exploration results in the Utica oil window and higher natural gas prices at Dorado. However, EOG enters the new year trading at a premium valuation (6.0x EV / DACF) and peer low FCF-yield, suggesting that any upside appreciation will be a function of higher commodity prices. With less competitive upside to our DCF valuation of $144 (lowered from $151 on lower oil price deck), we are downgrade EOG to Neutral from Buy."

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 $131.41 yesterday.

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