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Analysts’ Forecast for Marathon Oil after Its 2Q15 Earnings



Analysts’ forecast for Marathon Oil

In this series, we discussed how Marathon Oil’s (MRO) stock reacted negatively after its earnings release for the latest quarter. Now, we’ll look at Wall Street analysts’ forecast for Marathon Oil after its 2Q15 earnings release.

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Consensus rating for Marathon Oil

Approximately 59% of the analysts tracking Marathon Oil rate it a “buy,” ~34% rate the company a “hold,” and 7% rate it as a “sell.”

In comparison, ~50% of the analysts tracking Continental Resources (CLR) rate it a “buy,” while ~65% of analysts tracking SM Energy (SM) rate it a “buy.” Approximately 71% of analysts tracking Whiting Petroleum (WLL) rate it a “buy.” Marathon Oil accounts for 1.20% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Analysts’ recommendations

Here are Wall Street analysts’ target prices for Marathon Oil after its 2Q15 financial results. When it comes to individual recommendations, Evercore ISI, an independent investment banking advisory firm, gave Marathon Oil a target price of $23. Currently, it trades near $18. This implies an ~28% return over the next 12 months.

RBC Capital Markets is part of Royal Bank of Canada. It gave Marathon Oil a target price of $30. This implies a 66% return over the next 12 months.

Investment bank Barclays (BCS) gives Marathon Oil a 12-month target of ~$21. This is one of the lowest target prices. This implies a 17% return from Marathon Oil over the next 12 months. Another US investment bank is Morgan Stanley (MS). Its 12-month target price for Marathon Oil was $37. This was one of Marathon Oil’s highest target prices. This implies a whopping 105% return at Marathon Oil’s current price.

UBS is part of UBS Group AG (UBS). It gave Marathon Oil a one-year target price of $29. This implies a 61% return over the next 12 months.

To learn more about the oil and gas industry, visit Market Realist’s Energy and Power page.


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