UPDATE: JP Morgan Initiates Marathon Petroleum at Neutral; Valuation Currently Full
JP Morgan initiated coverage on Marathon Petroleum (NYSE: MPC) with a Neutral rating and a $62 price target.
JP Morgan commented, "We believe the MPC portfolio offers attractive exposure to the US Mid-Continent and Gulf Coast regions, investments designed to position the portfolio for an evolving North American crude production outlook, expanding Gulf Coast presence upon closure of the Texas City acquisition, and a midstream MLP that may serve as a source of additional value capture via asset dropdowns. However, we believe the current share price largely reflects underlying value, potentially limiting investors to the generous cash returns rather than capital appreciation, supporting our Neutral rating."
Marathon Petroleum closed at $59.40 on Thursday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.