UPDATE: Bank of America Downgrades Marathon Oil as Re-Rating Has Played Out
In a report published Wednesday, Bank of America analyst Doug Leggate downgraded Marathon Oil (NYSE: MRO) from Buy to Neutral, and lowered the price target from $45.00 to $42.00.
In the report, Bank of America noted, “Marathon has been amongst our top sector picks over the past few years. With the shares nearing all time highs reached in 2007, we believe the bulk of obvious incremental value anchored around its transition to an unconventional resource play is being recognized with the tail wind from recent oil price strength. But this is where we believe the investment case takes a pause: with declining production ex US, visibility on the next major source of incremental value and production is less clear and perhaps underlines the critical timing of the CEO transition underway. Given high exposure to elevated oil prices we believe after strong performance the appropriate rating from here is Neutral. PO to $42.”
Marathon Oil closed on Tuesday at $36.88.
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