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Why Analysts Are Bullish on MPLX Stock

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Ratings for MPLX

On July 18, Jefferies raised MPLX’s (MPLX) rating to “buy” and raised the target price for the stock to $38. Of the analysts surveyed by Reuters covering MPLX, 50% rate the stock as a “strong buy” and 50% rate it as a “buy.” None of the analysts rated MPLX as a “hold” or “sell.” The median target price for MPLX is $42, which implies an upside potential of ~15% from its current price of $36.54.

MPLX’s strong growth prospects, historical and expected distribution growth, healthy coverage, fee-based earnings, conservative leverage, and attractive yield likely contributed to analysts’ bullishness for the stock.

Peers’ ratings

Enterprise Products Partners (EPD) received all “buy” ratings from the analysts surveyed by Reuters. Enterprise Products Partners’ median target price of $32 implies an upside of ~7% from its current price of $29.91.

Of the surveyed analysts covering Plains All American Pipeline (PAA), 44% rated the stock as a “buy,” ~52% rated it as a “hold,” and ~4% rated it as a “sell.” Plains All American Pipeline’s mean target price of $26.3 implies an upside of ~6% from its current price of $24.85. In comparison, ~61% of the analysts recommended Magellan Midstream Partners (MMP) as “buy.”

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