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This Wall Street Target Price Indicates Upside for Marathon Oil

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Wall Street analyst 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 a “sell.” The median price target for these recommendations is $18.14, which is ~35% higher than the August 3, 2016, closing price of $13.42.

Based on the median price targets of recommendations from Wall Street analysts, upstream companies Carrizo Oil & Gas (CRZO), Gulfport Energy (GPOR), and Parsley Energy (PE) have potential upsides of ~36%, ~24%, and ~14%, respectively, from their August 3 closing prices.

The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies, whereas the Vanguard Energy ETF (VDE) invests in the broader energy market.

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Marathon Oil’s individual recommendations

As shown in the above table, the most recent recommendation of “overweight/attractive” comes from Morgan Stanley, issued on August 4, 2016. Morgan Stanley assigned Marathon Oil a target price of $21, which is ~56% higher than the August 3, 2016, closing price of $13.42. Morgan Stanley expects the target price to be reached within 12 months of the date of recommendation.

Barclays assigned Marathon Oil the lowest target price, $14, which is ~4% higher than the August 3, 2016, closing price of $13.42. Barclays reiterated its recommendation for MRO on August 3. Barclays did not indicate any target date for the target price.

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