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Marathon Petroleum and Valero Energy: Analysts’ Ratings



Analysts’ rating

In this part, we’ll discuss analysts’ ratings for Marathon Petroleum (MPC) and Valero Energy (VLO) after their first-quarter earnings. Marathon Petroleum is rated by 17 analysts. All of the analysts recommended a “buy” for Marathon Petroleum stock. However, Valero Energy is rated by 19 analysts. For Valero Energy, 14 analysts or 74% recommended a “buy.”

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Marathon Petroleum

Marathon Petroleum has 100% buy ratings, which represents positivity among analysts. Marathon Petroleum’s mean target price is $87 per share, which implies a 64% gain from the current level—the highest compared to its peers. After Marathon Petroleum’s earnings, Raymond James lowered its target price on the stock from $85 per share to $80 per share. RBC cut the target price from $71 to $70.

In the first quarter, Marathon Petroleum’s earnings grew in the retail and midstream segment due to the integration of Andeavor’s assets. The company is confident about achieving its stated synergies in upcoming quarters. Marathon Petroleum is still focused on its capex. The company has ongoing projects to modernize its refining segment, enlarge its midstream segment, and expand its footprint in the marketing segment.

Valero Energy

After Valero Energy’s earnings, Raymond James lowered its target price on the stock from $105 to $100. However, JPMorgan Chase increased its target price on the stock to $102 with a “neutral” rating. Valero Energy’s mean target price of $106 per share implies a 30% gain from the current level.

Most analysts rate Valero Energy as a “buy” due to its better-than-expected first-quarter earnings. Valero Energy’s growth activities have continued according to the schedule. With the company’s ongoing projects, it seems positioned to achieve its EBITDA targets. Analysts expect Valero Energy’s earnings to accelerate next year. Analysts expect the company’s EPS to rise 64% in 2020.


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