UPDATE: Global Hunter Securities Initiates Neutral, $37 PT on Marathon Oil Corporation
Global Hunter Securities initiates Marathon Oil Corporation (NYSE: MRO) with a Neutral rating and $37 price target as the growth potential may be priced into hits higher multiple in relation to peers.
Global Hunter Securities says, "The mid-2011 spinoff of the refining segment left MRO a leaner, exploration and production-focused company, and management is ramping up capex to build in new growth areas. As with many of its peers, MRO is focusing on liquids-rich US unconventionals (the Eagle Ford and Bakken Shales chief among them) while trying to build future international core areas through the drillbit. We see moderate growth potential and MRO is in some key basins, but the company is trading above peers on a NAV basis, and until we have a better sense of how MRO is executing in its growth plays we are on the sidelines."
MRO closed at $32.42 a share on Tuesday.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.