UPDATE: Bank of America Raises PO to $56 on Marathon Oil

Bank of America reiterates its Buy rating on Marathon Oil MRO and raises its price objective on shares to $56 from $50 as it believes current valuation underestimates the company's long-life assets. Bank of America says, "We have argued that the quality of an underlying asset base anchored on two long-life assets in Canada and EG contradicts a valuation that stands amongst the lowest of the large-cap US oils and ignores substantial free cash flow that we believe steps higher over the next year. Marathon Oil is an independent E&P, but it continues to be assessed against a legacy of integrated oils, with the consequence that similarities vs. other E&Ps are being overlooked. The strength of MRO's cash flow is inconsistent with the current valuation, in our view." MRO closed at $33.77 a share on Friday.