Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - UBS has reiterated its Buy rating on EOG Resources (NYSE:EOG) with a price target of $144.00, following a tour of the company’s facilities in Eastern Ohio. The target aligns with InvestingPro’s analysis, which indicates EOG is currently undervalued, while maintaining strong financial health with an EV/EBITDA ratio of 5.1x.
UBS analyst Josh Silverstein highlighted four key takeaways from the visit, including a clear development path for EOG’s Utica operations, evidenced by a new division opening in Columbus, Ohio.
The analyst noted that EOG remains on track to meet or exceed the $150 million in synergy targets from its Encino acquisition, demonstrating progress in integrating the purchased assets.
EOG’s use of in-house technologies and manufacturing capabilities for motors, drill bits, and production facilities provides the company with a clear cost advantage in its operations, according to UBS.
The investment firm expressed increased confidence in EOG’s Utica growth outlook, stating that the company appears positioned to transform this from an emerging play into a core asset in 2026. With strong cash flows and a healthy current ratio of 1.79, EOG demonstrates the financial flexibility needed to support this strategic expansion.
In other recent news, EOG Resources reported net cash gains of $27 million from financial commodity derivative settlements during the third quarter of 2025. The company highlighted that deliveries under its 10-year natural gas sales agreement, linked to Brent crude oil prices, are expected to start in January 2027. In terms of analyst ratings, Benchmark maintained a Hold rating on EOG Resources following the company’s $5.6 billion acquisition of Encino, and adjusted its third-quarter estimates for the company. Mizuho reiterated a Neutral rating, expecting EOG to surpass consensus estimates by about 4% on EBITDAX and cash flow per share for the third quarter. Melius Research initiated coverage with a Buy rating, emphasizing EOG’s strong capital discipline. Additionally, Bernstein SocGen Group raised its price target for EOG Resources to $146 from $140, citing improved operational efficiency and cost reductions. These developments are part of the recent updates surrounding EOG Resources.
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