Devin McDermott, an analyst from Morgan Stanley, maintained the Hold rating on EOG Resources (EOG – Research Report). The associated price target is $142.00.
Devin McDermott’s rating is based on a combination of factors including EOG Resources’ recent financial performance and future projections. The company’s reported production and capital expenditures were largely in line with expectations, but the free cash flow guidance was slightly below Morgan Stanley’s estimates. Additionally, while EOG announced a promising joint venture in Bahrain to explore for gas, which could provide future growth opportunities, the immediate impact on financials remains uncertain.
Moreover, EOG’s mixed fourth-quarter results showed EBITDA slightly above consensus but cash flow per share below expectations. Production volumes were generally in line, with oil volumes slightly exceeding guidance. However, capital expenditures were higher than anticipated, which could impact profitability. Given these mixed signals, McDermott has opted for a Hold rating, reflecting a cautious stance on the stock’s near-term potential.
In another report released on February 28, Barclays also maintained a Hold rating on the stock with a $146.00 price target.