Jason Gabelman, an analyst from TD Cowen, maintained the Buy rating on Marathon Petroleum. The associated price target was lowered to $182.00.
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Jason Gabelman has given his Buy rating due to a combination of factors that highlight Marathon Petroleum’s strong financial performance and strategic positioning. The company reported stronger-than-expected earnings, aligning with its large-cap peers, and demonstrated durable capture rates, although it refrained from projecting over 100%. Despite slightly worse balance sheet metrics than targeted, which might affect buyback levels in the upcoming quarter, Marathon Petroleum stands out with the most attractive free cash flow yield for 2026 among large-cap refiners.
Additionally, Marathon Petroleum benefits from differentiated growth driven by its Midstream operations, which support future expansion. The company’s investment thesis is further bolstered by its buyback strategy, although the pace may slow. The recent acquisition by MPLX, a subsidiary, enhances its growth prospects, ensuring robust distribution growth. These strategic moves and financial metrics underpin Gabelman’s confidence in maintaining a Buy rating, even as the price target is adjusted to $182 based on a revised earnings forecast.
In another report released today, Scotiabank also maintained a Buy rating on the stock with a $180.00 price target.