In a report released yesterday, Joe Laetsch from Morgan Stanley maintained a Buy rating on Marathon Petroleum, with a price target of $160.00.
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Joe Laetsch has given his Buy rating due to a combination of factors influencing Marathon Petroleum’s performance. The company is expected to see stronger earnings in its Refining segment, driven by a significant increase in benchmark cracks, which are up approximately 40% quarter-over-quarter. This improvement is anticipated to support higher sequential results in refining, despite some challenges such as weaker NGL prices. Additionally, the throughput is projected to rise following maintenance, aligning with company guidance.
In the Midstream segment, while earnings are expected to decline slightly due to lower NGL prices and higher project expenses, the impact is somewhat mitigated by incremental EBITDA from recent acquisitions. Furthermore, the Renewable Diesel segment is poised to benefit from increased throughput and additional production tax credits, which were limited in the previous quarter. These factors collectively contribute to a positive outlook for Marathon Petroleum, justifying the Buy rating.
Laetsch covers the Energy sector, focusing on stocks such as Delek US Holdings, Marathon Petroleum, and Phillips 66. According to TipRanks, Laetsch has an average return of 1.7% and a 63.64% success rate on recommended stocks.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $205.00 price target.