A recent analysis by Mizuho has adjusted the price target for EOG Resources (EOG, Financial) from $140 to $134, while maintaining a Neutral stance on the stock. This revision follows an evaluation of integrated oil models after the first quarter earnings report. Mizuho's review includes a mixed outlook for the industry: they anticipate a weakening in global oil prices due to expected oversupply, contrasting with an optimistic forecast for U.S. natural gas prices, which are predicted to rise by 15% owing to continued undersupply.
Moreover, Mizuho projects an improvement in U.S. refining fundamentals over the coming year, attributed to tight inventory levels and the potential for higher refining margins as oil prices decline. While the firm has made strategic changes to its selections and ratings, including some upgrades and one downgrade, EOG remains a stock with a Neutral rating amid these broader market expectations.
