Morgan Stanley has adjusted its price target for EOG Resources (EOG, Financial), lowering it to $131 from the previous target of $136. The investment firm maintains an Equal Weight rating on EOG shares. This revision is part of a broader recalibration of estimates covering North American energy stocks, reflecting the recent downturn in oil prices.
The firm has reduced its cash flow forecasts for the years 2025 and 2026, positioning them below the consensus expectations. The adjustment comes amid a backdrop of market uncertainty, prompting Morgan Stanley to apply a larger discount to the net asset value implied multiples, particularly for small to mid-cap producers and companies with potential execution challenges.
Given the current weak fundamentals of the oil market in the short to medium term, Morgan Stanley maintains its E&P industry stance at an In-Line level.
