Marathon Petroleum (MPC – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Joe Laetsch from Morgan Stanley maintained a Buy rating on the stock and has a $175.00 price target.
Joe Laetsch’s rating is based on a combination of factors that highlight both challenges and opportunities for Marathon Petroleum. Despite the stronger benchmark cracks, which increased by approximately 25% quarter-over-quarter, the company faces elevated turnaround activities that impact utilization and capture rates. These activities have resulted in significant expenses, but the expectation is that refining margins will normalize to historical levels as seasonal tailwinds dissipate.
In the Midstream segment, while stronger natural gas liquids prices provide a modest benefit, the impact of fewer days in the quarter slightly offsets this advantage. Additionally, the Renewable Diesel segment is expected to face challenges due to the transition from the Blenders Tax Credit to the Production Tax Credit, which may weigh on results. However, the overall stability in midstream results and the strategic management of these factors contribute to the Buy rating for Marathon Petroleum.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $175.00 price target.
Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MPC in relation to earlier this year.