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Marathon Petroleum Is in the Top Spot

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Apr. 16 2019, Published 8:11 a.m. ET

Marathon Petroleum

Marathon Petroleum (MPC) occupies the top spot among the six US refiners. All of the 17 analysts covering Marathon Petroleum recommended a “buy” in April before the first-quarter earnings.

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Marathon Petroleum’s peers with lower “buy” ratings include Delek US Holdings (DK), PBF Energy (PBF), and HollyFrontier (HFC). They have been rated as a “buy” by 53%, 44%, and 18% of the analysts, respectively.

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Target price changes

Few of the analysts cut their target prices on Marathon Petroleum stock.

  • Raymond James cut the target price from $90 to $85.
  • JP Morgan Chase cut the target price from $93 to $89.
  • Cowen cut the target price from $97 to $94.

Marathon Petroleum’s mean target price is $90 per share, which implies a 42% gain from the current level.

Favorable opinion

Marathon Petroleum has been expanding through capex and acquisitions. The recent acquisition of Andeavor has enlarged Marathon Petroleum’s capacities and network. Analysts expect the company’s earnings to increase 53% in 2020. Marathon Petroleum will likely benefit from merger synergies and growth projects. Marathon Petroleum’s earnings are expected to rise from $0.04 per share in the first quarter of 2018 to $0.32 per share in the first quarter. Marathon Petroleum is one of the few companies that’s expected to post higher earnings in the first quarter.

Analysts likely expect Marathon Petroleum stock to increase as Andeavor is integrated and markets recognize the massive growth in the company’s capacities, earnings, and cash flows.

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