UPDATE: Credit Suisse Raises PT to $42 on Marathon Oil
Credit Suisse increases its price target to $42 on Neutral-rated Marathon Oil (NYSE: MRO) as valuation appears more discounted than peers.
Credit Suisse says, "Despite the shares rallying 18% ytd (SPX up 8%) both shares are at a deeper discount to NAV than the average larger cap producer. MRO already has a strong existing asset base of longer lived assets underpinning cashflow. The Eagle Ford provides growth on top. Closing the 31% gap to NAV or even pushing the NAV higher from here requires positive surprises in the Eagle Ford or asset disposals. Demonstrating that management can redirect asset sale proceeds into attractive acreage acquisition would help too (Brent is $120/bbl after all)."
MRO closed at $35.01 a share on Friday.
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