Market Overview

RBC Upgrades Marathon, Downgrades BP

RBC Upgrades Marathon, Downgrades BP

RBC upgraded Marathon Oil Corporation (NYSE: MRO) and downgraded BP plc (NYSE: BP) Tuesday, saying growth looks good for both companies — but BP is less of a value after its recent outperformance. 

The Analysts

RBC Capital Markets analyst Scott Hanold upgraded Marathon from Sector Perform to Outperform and raised the price target from $22 to $23.

RBC Europe analyst Biraj Borkhataria downgraded BP from Top Pick to Outperform and lowering the price target on BP's U.S. stock from $49.60 to $49.10.

The Thesis 

At Marathon, RBC expects industry-leading free cash flow yields, Hanold said in the Tuesday upgrade note. The company should drive strong organic production through 2020, he said.

While Marathon's performance should be underpinned by its core drilling in the Eagle Ford and Bakken shale basins, the Permian Basin should also start to meaningfully contribute, the analyst said. 

Borkhataria cited value for the BP downgrade, saying the share price has simply come up to the point where there’s less valuation upside.

Price Action

Shares of Marathon were up 0.29 percent to $17.43 at publication time Tuesday. BP shares were down slightly, by 0.53 percent to $44.44.

Related Links:

A Peek Into The Markets: US Stock Futures Higher Ahead Of Earnings

FreightWaves Oil Report: The Numbers Don't Lie; The Market Is Getting Tighter

Public domain photo via Wikimedia

Latest Ratings for MRO

Oct 2019MaintainsEqual-Weight
Sep 2019DowngradesBuyHold
Sep 2019Initiates Coverage OnNeutral

View More Analyst Ratings for MRO
View the Latest Analyst Ratings

Posted-In: Oil RBC Capital Markets Scott HanoldUpgrades Downgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (BP + MRO)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

More Shelf Space At Target Turns DA Davidson Bullish On e.l.f. Beauty

'A Really Nice Entry Point': Cannabis Microdosing And Who It's For