UPDATE: Bank of America Merrill Lynch Resumes Coverage on Marathon Petroleum Corp. with Buy Rating, $70 PT

In a report published Wednesday, Bank of America Merrill Lynch resumed coverage on Marathon Petroleum Corp.

with a Buy rating and $70.00 price target. BofA Merrill Lynch noted, “We are resuming coverage of Marathon Petroleum Corp following the MPLX IPO with a Buy rating and price objective of $70. For context we position MPC alongside Valero as our two preferred names in the sector. Overall, we retain a broadly cautious sector view given the seasonal downturn in demand and potential negative supply catalysts. But with growing exposure to discounted heavy Canadian crude at its recently converted Detroit refinery, and increased leverage to the Gulf Coast via the pending Texas City acquisition we view MPC as equally leveraged to the emerging crude advantage we envisage on the US Gulf Coast. Alongside the recent IPO of MPLX LP, which anchors the value of a previously undervalued mid stream we believe MPC can sustain a premium multiple versus most peers….with upside if current crude differentials hold.” Marathon Petroleum Corp. closed on Tuesday at $57.00.