Ratings for Marathon Oil
Currently, ~54% of Wall Street analysts rate Marathon Oil (MRO) as a “buy,” and ~43% of analysts rate it as a “hold.” Around 3% rate the stock as a “sell.” The median price target from these recommendations is $18.13, which is ~34% higher than the July 25, 2016, closing price of $13.58.
As shown in the table above, the most recent recommendation of “market perform” came from BMO Capital Markets, which issued its rating on July 25, 2016. BMO Capital Markets assigned Marathon Oil the target price of $20, which is ~47% higher than the July 25, 2016, closing price of $13.58. BMO Capital Markets did not mention any target date for that target price.
Tudor, Pickering, Holt & Company assigned Marathon Oil the highest target price of $25, which is ~84% higher than the July 25, 2016, closing price of $13.58. Tudor, Pickering, Holt & Company issued their Marathon Oil recommendation on July 22 and did not mention any target date for the target price.
Other upstream players
Based on the median price targets of recommendations from Wall Street analysts, EP Energy (EPE), Energen (EGN), and Memorial Resources Development (MRD) have potential upsides of ~32%, ~25%, and ~21%, respectively, from their July 25, 2016, closing prices.
The Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies, whereas the Direxion Daily Energy Bull 3X ETF (ERX) is a leveraged ETF, which invests in domestic companies from the energy sector.
In the next and final part of the series, we’ll analyze MRO’s stock reactions to earnings releases.