RBC Capital lifts EOG Resources stock rating, raises target to $155

Published 12/02/2025, 10:16
RBC Capital lifts EOG Resources stock rating, raises target to $155

On Wednesday, EOG Resources Inc. (NYSE:EOG) received an upgraded stock rating from RBC Capital Markets, moving from Sector Perform to Outperform. Alongside the rating change, EOG Resources also saw its price target increased from $150.00 to $155.00. The upgrade by RBC Capital Markets was attributed to the company’s sustained strong operational performance and its exposure to rising natural gas prices, which are expected to benefit the energy producer. According to InvestingPro data, EOG has demonstrated robust financial health with a "GREAT" overall score, and 11 analysts have recently revised their earnings expectations upward for the upcoming period.

The analyst at RBC Capital underscored the potential for EOG Resources to achieve premium commodity price realizations, which could bolster the company’s financial results. Additionally, the possibility of significant stock buybacks was noted as a factor that could enhance shareholder value in the near term.

EOG Resources is also poised to capitalize on its involvement in the Dorado play, where there is an opportunity related to natural gas. The analyst anticipates that upcoming catalysts for the company may include a substantial increase in stock buybacks for the fourth quarter of 2024 and the continued development of the Dorado play, which could provide additional natural gas optionality.

The company’s stock is expected to respond to these positive developments, as the upgraded rating and increased price target reflect RBC Capital Markets’ optimistic outlook on EOG Resources’ future financial performance and strategic initiatives. The firm’s analysis suggests that these factors, combined with the current market conditions, position EOG Resources favorably for growth. Trading near its 52-week high, EOG’s market value of $74.09 billion reflects investor confidence in its prospects. For deeper insights into EOG’s valuation and growth potential, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.

In other recent news, EOG Resources announced the retirement of board member Donald F. Textor, who will not seek re-election at the company’s 2025 annual stockholders meeting. Textor has significantly contributed to EOG’s growth since his appointment in 2001. In financial news, EOG Resources reported a net cash inflow of $19 million in Q4 2024 from the settlement of various financial commodity derivative contracts, part of the company’s strategy to secure future revenues and cash flows.

In analyst updates, BofA Securities downgraded EOG Resources from Buy to Neutral and reduced the price target to $144 from $151, following a period of outperformance in 2024. On the other hand, RBC Capital maintained its Sector Perform rating and a price target of $150.00 on EOG Resources shares. Mizuho (NYSE:MFG) upgraded its price target for EOG Resources to $156, sustaining an Outperform rating, following a thorough analysis of EOG Resources’ third-quarter earnings for 2024.

These are recent developments in EOG Resources, a major player in the crude oil and natural gas exploration and production space. The company has been recognized for its financial resilience and ability to execute in the oilfield, a reputation that has been built over a considerable period. EOG Resources has outlined a plan for balance sheet optimization over the next 12 to 18 months, which is expected to offer the company exceptional flexibility.

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