BMO Capital analyst Phillip Jungwirth maintained a Buy rating on Marathon Petroleum yesterday and set a price target of $200.00.
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Phillip Jungwirth has given his Buy rating due to a combination of factors that highlight Marathon Petroleum’s financial strength and strategic positioning. He emphasizes the company’s robust free cash flow generation and consistently high capital return to shareholders, supported by ongoing share buybacks that can be maintained without increasing gross debt. Jungwirth also notes that Marathon’s extensive refining presence in key U.S. regions (PADD 2 and 3) provides a structural advantage in both export markets and access to cost-advantaged feedstocks, which supports resilient refining margins even as crack spreads fluctuate.
In addition, his positive view incorporates the contribution from MPLX, which has delivered solid EBITDA growth and offers stable cash flows and distributions back to Marathon. This midstream exposure helps balance refining cyclicality and strengthens the overall cash flow profile. When combining these operational and financial strengths with what he views as an attractive valuation on a sum-of-the-parts basis, Jungwirth concludes that Marathon’s risk-reward profile supports a Buy recommendation.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $194.00 price target.