Analyst Neil Mehta from Goldman Sachs maintained a Buy rating on Marathon Petroleum and increased the price target to $186.00 from $169.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Neil Mehta has given his Buy rating due to a combination of factors that highlight Marathon Petroleum’s strong position in the refining sector. The company is well-placed to benefit from favorable refining market conditions, supported by its robust operational performance and significant presence in the Gulf Coast region. Additionally, Marathon Petroleum’s strategic leverage on the West Coast is seen as advantageous amidst tightening market dynamics.
Furthermore, the company’s diversified earnings profile, particularly through its Midstream contributions, supports leading capital returns among its peers. Mehta emphasizes the management’s commitment to returning capital to shareholders, notably through share repurchases, with an anticipated capital returns yield of approximately 9% in 2025/26. Despite some challenges, such as operational updates needed for the Galveston Bay refinery and a challenging renewable diesel market, the overall outlook for Marathon Petroleum remains positive, driven by its strong balance sheet and commitment to capital returns.
According to TipRanks, Mehta is a 5-star analyst with an average return of 9.0% and a 59.00% success rate. Mehta covers the Energy sector, focusing on stocks such as Chevron, Ovintiv, and Marathon Petroleum.
In another report released on July 16, Morgan Stanley also maintained a Buy rating on the stock with a $182.00 price target.