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UPDATE: Morgan Stanley Upgrades EOG Resources on Multiple Positive Factors

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In a report published Monday, Morgan Stanley analyst Evan Calio upgraded the rating on EOG Resources (NYSE: EOG) from Equal-Weight to Overweight, and raised the price target from $168.00 to $200.00.

In the report, Morgan Stanley noted, “EOG's unconventional assets have ripened over the last few quarters. With tighter oil differentials and elevated oil prices, coupled with positive operating momentum and improving capital efficiencies, we anticipate EOG will generate positive FCF in 2013-14 — for the first time in over a decade. EOG has a high-return, deep portfolio with over 15 years of drilling inventory (~60% IRR) with downspacing and Permian upside. In our view, EOG can continue to grow production and cash flows by 46% for four years (through 2016) on a fully funded basis, assuming $95 Brent. EOG's CEO recently noted that the company's ‘portfolio and new venture potential' was the best in his over 30-year career. We think EOG's valuation does not reflect that quality.”

EOG Resources closed on Friday at $161.72.

Latest Ratings for EOG

DateFirmActionFromTo
Jul 2016Tudor PickeringDowngradesHoldBuy
Jul 2016BarclaysMaintainsOverweight
Jun 2016CLSAInitiates Coverage onUnderperform

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Posted-In: Evan Calio Morgan StanleyAnalyst Color Upgrades Analyst Ratings

 

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