KLR Group Upgrades EOG Resources Inc to Buy

KLR Group upgraded EOG Resources Inc. EOG to a Buy on Thursday with a Price Target of $140.

Analyst John Gerdes claimed that EOG has achieved “outstanding asset productivity complemented by execution.”

Gerdes viewed EOG’s growth coming largely from “the South Texas Eagle Ford Shale, Williston Basin Bakken/TFS Shale and Delaware Basin Leonard/Bone Spring/Wolfcamp Shale. “

The KLR Group $140 Price Target is “based on the net present value of free cash flow over the life of a company using a reasonable discount rate.”  Gerdes uses a 12.5 percent discount rate which “includes the long-term nominal performance of the broader equity market (10-12 percent), the greater inherent volatility of cyclical energy investments and the company’s market capitalization above $10 billion (i.e. large-cap).”

EOG Resources Inc. recently traded at $96.85.