Analyst Suvro Sarkar from DBS maintained a Buy rating on Marathon Petroleum (MPC – Research Report) and keeping the price target at $163.00.
Suvro Sarkar has given his Buy rating due to a combination of factors that highlight Marathon Petroleum’s strategic advantages and growth prospects. Marathon Petroleum is the largest domestic refinery in the US, which allows it to benefit from lower crude procurement costs due to its reliance on domestic crude sources. This cost advantage is complemented by its extensive midstream business, which enhances its oil transportation capabilities across the country.
Additionally, Marathon Petroleum is a leader in renewable fuels, benefiting from favorable state laws and its joint venture with Neste, which has reached full capacity. Despite slower earnings momentum in refining, the midstream segment has been a significant driver of operating income. The company has also demonstrated strong shareholder returns, supported by robust operating cash flow and substantial share repurchases. These factors, along with expected demand growth and favorable policy tailwinds, justify the Buy rating with a target price of USD 163.
In another report released on March 14, Barclays also maintained a Buy rating on the stock with a $161.00 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.