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Behind Marathon Petroleum’s Target Prices

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Analyst ratings for Marathon Petroleum

In this series, we’ve examined Marathon Petroleum’s (MPC) third-quarter estimates, refining earnings outlook, stock performance, moving averages, and stock price estimate before its 3Q17 earnings release, which is expected on October 26, 2017.

Now, we’ll review the ratings of the analysts covering the stock.

Of the 19 analysts covering MPC stock, 15 (79%) analysts have assigned a “buy” or “strong buy” ratings, while four have assigned a “hold” rating, and none has assigned a “sell” or “strong sell” rating on the stock.

(For more on Marathon Petroleum’s current position and future growth plans, please refer to Market Realist’s series Marathon Petroleum’s on Its Strategic Path: How’s It Doing?)

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Changes in MPC’s target prices and analyst ratings

The analyst ratings for Marathon Petroleum have weakened compared with September 2017, when MPC had more “buy” ratings and fewer “hold” ratings. Recently, Goldman Sachs downgraded MPC from “buy” to “neutral.”

However, MPC has witnessed increases in its target prices from various investment banking firms. JP Morgan has raised MPC’s target price from $62 to $64, and Simmons has raised MPC’s target price from $59 to $60. MPC’s mean target price stands at $64 per share, which implies a 14% gain from its current level.

Peer ratings

Delek US Holdings (DK), HollyFrontier (HFC), and Phillips 66 (PSX) have been rated as a “buy” by 33%, 29%, and 42% of their analysts, respectively. PBF Energy (PBF) and Andeavor (ANDV) have been rated as “buy” by 29% and 82% of analysts, respectively.

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