Marathon Petroleum: Wall Street Analysts’ Ratings

Analysts’ ratings for Marathon Petroleum

In the previous two parts, we discussed Marathon Petroleum’s (MPC) growth possibilities and refining earnings expectations. In this part, we’ll review analysts’ opinion on the stock.

Marathon Petroleum: Wall Street Analysts’ Ratings

Marathon Petroleum is covered by 14 analysts. For Marathon Petroleum, 13 analysts (or 93%) assigned “buy” or “strong buy” ratings on the stock. The company’s mean target price of $99 per share implies an ~29% gain from the current level.

Analysts are positive on Marathon Petroleum

Marathon Petroleum is on a high growth trajectory with its planned capex and ongoing acquisition of Andeavor (ANDV). MPC has ongoing organic growth activities to modernize its Refining segment, enlarge its Midstream segment, and expand its footprints in the Marketing segment. After the merger, Marathon Petroleum is expected to see increased earnings.

Marathon Petroleum’s second-quarter earnings beat the estimates. The company’s second-quarter EPS was 120% higher than its adjusted EPS in the second quarter of 2017. Marathon Petroleum’s refining margins rose, which led to an 82% rise in its refining earnings in the second quarter. The Midstream segment’s operating income rose 86% YoY in the second quarter.

Marathon Petroleum’s strong second-quarter performance and the expectation of high earnings growth in the near term could be why analysts are confident about the stock.

Peers’ ratings

Phillips 66 (PSX), Valero Energy (VLO), and Andeavor (ANDV) have been rated as a “buy” by 42%, 67%, and 21% of the analysts, respectively. Delek US Holdings (DK), PBF Energy (PBF), and HollyFrontier (HFC) have been rated as a “buy” by 93%, 47%, and 31% of the analysts, respectively.

Next, we’ll discuss Marathon Petroleum’s earnings in more detail.