EOG Resources: A Strong Force in the Upstream Energy Industry
(Continued from Prior Part)
What’s Wall Street saying?
Previously in this series, we saw EOG Resources’ (EOG) performance and returns over the past three years. Now, let’s look at Wall Street analysts’ recommendations for the company.
Consensus ratings
It’s important to note that ~69% of analysts tracking EOG Resources rate it a “buy” or some equivalent. Of the analysts, ~24% rate the company a “hold” or an equivalent, while 7% of the analysts recommend a “sell.” EOG Resources is 2.9% of the iShares US Energy ETF (IYE).
In comparison, ~60% of analysts tracking Marathon Oil (MRO) rate it a “buy” or some equivalent, 47% of the analysts have rated Continental Resources (CLR) as “buy,” and 63% of the analysts tracking Pioneer Natural Resources (PXD) have rated it as “buy.”
Analysts’ recommendations
RBC Capital Markets, a Canadian investment bank and a part of the Royal Bank of Canada, gave EOG Resources a target price of $106. Currently, EOG Resources trades near $88. This implies an 19% return over the next 12 months.
French investment bank Societe Generale has a $105 target price for EOG Resources with a “buy” recommendation. This implies an 18% return over the next 12 months.
Investment bank Goldman Sachs (GS) has the highest target price for EOG Resources. Its target of $113 implies an ~27% return from EOG Resources over the next 12 months.
Barclays (BCS) is another investment bank. It gave EOG Resources a pessimistic one-year target price of $86. This implies a negative ~2% return.
Capital One Securities gave EOG Resources the most pessimistic target with an “underweight” recommendation. Its target price of $79 implies a -10% return over the next 12 months.
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