UPDATE: Credit Suisse Upgrades Marathon Oil to Outperform on Un-Risked Upside Potential

Credit Suisse raised its rating on Marathon Oil MRO from Neutral to Outperform. Credit Suisse commented, "As we said after Q2, in "Reiterating Growth, Spending within Cashflow", MRO is demonstrating capital discipline while delivering margin enhancing production growth. Today we raise our rating to Outperform (from Neutral), with a target price of $37/sh. Further upside is available from improving execution in the Eagle Ford (+$4/sh) and exploration in the pre-salt Gabon (up to $8/sh). MRO is under-earning today on 40% of its portfolio, has a high share of long lived assets, and is growing new sources of high margin barrels. We are raising EPS by 2-4% to reflect the Paloma acquisition> Marathon Oil closed at $30.31 on Tuesday.