UPDATE: Societe Generale Downgrades EOG Resources to Sell on Valuation

Societe Generale reduced its rating on EOG Resources EOG from Hold to Sell with a $118 price target. Societe Generale noted, "We continue to like EOG, but not the stock valuation. It currently trades at c.$78,500/daily flowing BOE, roughly 20% above our coverage universe, and at a nearly 30% premium on EV/EBITDA, which we think discounts much of the upside. We consider EOG a crowded long (95% of float). We like what we heard on today's call, and expect the Street to increase targets, but we'd take profits. EOG's YTD spending deficit was met with $556M of realized gains from derivatives, which it has been actively trading and that we do not give full credit for." EOG Resources closed at $121.98 on Tuesday.