UPDATE: Goldman Sachs Upgrades Marathon Petroleum to Buy
Goldman Sachs upgrades Marathon Petroleum (NYSE: MPC) from a Neutral to a Buy rating and reiterates a price target of $58.
Goldman Sachs comments, “Marathon shares are trading near our estimated low-end trading value, making risk/reward quite favorable given its high exposure to our bullish MidCon view. While from a capacity standpoint, the company is exposed to both the Mid-Continent and Gulf Coast regions, we have treated Marathon as an effective MidCon pure-play as its returns on capital have cycled more closely with MidCon pure-plays than diversified peers like Valero. We view positively Marathon's growing “social contract” with investors to return excess cash given dividend increases and a stock buyback program announced earlier this year. We continue to have a positive view of Marathon's management team and integrated, high-quality asset base.”
MPC closed at $40.87 yesterday.
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