KeyBanc has revised its price target for EOG Resources (EOG, Financial), lowering it from $150 to $140, while maintaining an Overweight rating on the stock. This adjustment comes as the firm updates its Q1 forecasts in anticipation of the upcoming earnings season. In a strategic move, KeyBanc has decreased its oil price expectations while increasing its natural gas price outlook.
The firm expresses concerns that oil prices might be facing exaggerated short-term pressure. Factors such as anticipated growth from OPEC+, the expansion of U.S. oil production, and fears of a global economic slowdown are cited as contributors to this situation. Despite this, the firm's predictions still sit above the current levels of the NYMEX WTI futures.
On the natural gas front, KeyBanc notes that unexpected severe weather conditions and the launch of new LNG export projects have contributed positively to market conditions. However, the firm remains alert regarding the continuous production levels in the Lower 48 states (L48). While rising oil production poses a challenge, KeyBanc believes that a slowdown in oil output could help in controlling the production of associated natural gas.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 29 analysts, the average target price for EOG Resources Inc (EOG, Financial) is $138.18 with a high estimate of $161.00 and a low estimate of $114.00. The average target implies an upside of 25.05% from the current price of $110.50. More detailed estimate data can be found on the EOG Resources Inc (EOG) Forecast page.
Based on the consensus recommendation from 33 brokerage firms, EOG Resources Inc's (EOG, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for EOG Resources Inc (EOG, Financial) in one year is $127.47, suggesting a upside of 15.36% from the current price of $110.5. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the EOG Resources Inc (EOG) Summary page.
