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How Analysts Are Rating Marathon Petroleum after 3Q17 Earnings



Analyst Ratings for MPC

In this series, we’ve looked at Marathon Petroleum’s (MPC) 3Q17 earnings and compared them to the estimates. We’ve also analyzed MPC’s refining margin trend for 3Q17. We also discussed MPC’s stock performance after its earnings release on October 26, 2017. Now we’ll look at analysts’ ratings for MPC after its 3Q17 earnings.

After the earnings release, 19 analysts have rated Marathon Petroleum. Fifteen of them (or 79.0%) have assigned it a “buy” or “strong buy,” and four (or 21.0%) have assigned it a “hold.” None of the analysts have rated it a “sell” or “strong sell.”

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As analysts drill down further into the 3Q17 numbers, MPC could see some changes to its ratings and target price. Before its 3Q17 release, MPC had seen a mixed trend in target price changes, which are provided by various investment banking firms. Scotia Howard Weil cut MPC’s target price from $59 to $57 per share. Citigroup, however, raised MPC’s target price from $67 to $69. Jefferies raised MPC’s target price to $65 per share. MPC’s mean target price stands at $65 per share, which implies a 14.0% rise from its current level.

Analysts’ ratings for peers

MPC’s peers HollyFrontier (HFC), Delek US Holdings (DK), and Andeavor (ANDV) have been rated a “buy” by 31.0%, 33.0%, and 77.0% of analysts, respectively. Other downstream players, PBF Energy (PBF), Valero Energy (VLO), and Phillips 66 (PSX), have been rated a “buy” by 29.0%, 43.0%, and 42.0% of analysts, respectively.

In the next part, we’ll look at the change in implied volatility for Marathon Petroleum after its 3Q17 earnings. We’ll also look at the MPC stock price forecast for the eight days after its earnings release.


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