EOG Resources upgraded but price target trimmed at RBC Capital

|About: EOG Resources, Inc. (EOG)|By:, SA News Editor

EOG Resources (EOG +1%) edges higher as RBC Capital upgrades shares to Outperform from Sector Perform but lowers its price target to $125 from $142, citing EOG's "strong balance sheet, high quality asset base and valuation that now looks more favorable."

RBC analyst Scott Hanold also cites the company's "more durable" business model amid a "more volatile" oil price environment expected for the next several months.

Hanold says although his new price target assumes a 5%-10% discount to his net asset value view, he is positive on EOG's efforts to decouple the "business from commodity prices by focusing on debt reduction, premium drilling and capturing margin in ancillary areas."

EOG shares were downgraded to Neutral from Buy last Friday at BofA Merrill Lynch.

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