UPDATE: Credit Suisse Lowers Target on Marathon Petroleum to $60
Credit Suisse maintains its Outperform rating on Marathon Petroleum (NYSE: MPC) and lowers its price target by $3 to $60 as the company's hedging benefit from long haul crude is not likely to repeat.
Credit Suisse says, "Refiners were benefiting from hedges on their long haul crude which are unlikely to be repeated. Adjusting for this artificially high capture and for slightly lower throughputs, we cut EPS by 6% to $4.75 in 2012 and 9% to $6.26 in 2013. Our 2014 EPS estimate is lowered to $7.14 from $7.27. Theoretical fair equity value should rise from $53/sh based on 2012 EBITDA, to $74/sh in 2013 (with an MLP) and $87/sh in 2014."
MPC closed at $41.88 a share yesterday.
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