Why Analysts Expect a Subdued Performance from Marathon in 1Q16
MPC’s analyst ratings
In this series, we’ve examined Marathon Petroleum’s (MPC) 1Q16 estimates, refining segment outlook, stock performance, recent moves, and capex plans ahead of its earnings release expected on April 28, 2016. In this part, we’ll examine the ratings of analysts covering the stock.
The above table shows that eight of the ten firms covering the stock have rated MPC as “buy,” “overweight,” or “outperform.” The highest 12-month price target for MPC stands at $65, indicating a 69% gain from current levels. The remaining two firms have rated Marathon Petroleum as a “hold.” The average 12-month price target for MPC stands at $52, indicating a 36% gain from current levels. None of the above firms have given a “sell” rating to Marathon Petroleum. MPC’s lowest 12-month price target stands at $38, implying a 1% loss from current levels.
The highest price target for MPC is set by Wolfe Research, whereas the lowest price target is specified by Piper Jaffray. Firms like Cowen, Evercore ISI, and RBC Capital Markets have positive recommendations for the stock and have given it a price target equal to or exceeding $55 per share. On the other hand, firms like Piper Jaffray and J.P. Morgan have given “neutral” recommendations on the stock.
Analyst recommendations for MPC peers
Marathon Petroleum’s (MPC) peers Western Refining (WNR), Alon USA Energy (ALJ), and HollyFrontier (HFC) have been rated as a “buy” by 43%, 9%, and 35% of analysts surveyed, respectively. For exposure to mid-cap stocks, you can consider the iShares Core S&P Mid-Cap ETF (IJH). The ETF also has WNR and HFC in its portfolio.
Browse this series on Market Realist: