UPDATE: Oppenheimer Raises PT on Marathon Petroleum to $55
Oppenheimer has published a research report on Marathon Petroleum (NYSE: MPC) and has raised the price target from $42 to $55 to reflect the company's $2 billion share buyback program announced last week.
In the report, Oppenheimer writes, "MPC is also evaluating an MLP for its Midstream assets, which could further boost its valuation. The completion of the Detroit heavy oil project this year should reduce future spending in its refining segment and boost its free cash flow. This strong free cash flow generation, low debt ratio, and the large cash balance of $3 billion, or $8.40/share, give MPC the financial flexibility to fund its CAPEX, grow its dividend, buyback shares, make strategic acquisitions and still maintain its investment grade rating, in our view. We have adjusted our estimates for updated guidance."
Oppenheimer maintains its Outperform rating on Marathon Petroleum, which is currently trading up $1.00 from Friday's $43.98 closing price.
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