Assessing Marathon Oil: Insights From 20 Financial Analysts

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Analysts' ratings for Marathon Oil MRO over the last quarter vary from bullish to bearish, as provided by 20 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 7 6 7 0 0
Last 30D 0 0 1 0 0
1M Ago 2 0 1 0 0
2M Ago 2 4 1 0 0
3M Ago 3 2 4 0 0

Analysts have recently evaluated Marathon Oil and provided 12-month price targets. The average target is $32.65, accompanied by a high estimate of $45.00 and a low estimate of $26.00. Observing a 4.95% increase, the current average has risen from the previous average price target of $31.11.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of Marathon Oil by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Roger Read Wells Fargo Lowers Equal-Weight $29.00 $38.00
Nitin Kumar Mizuho Raises Neutral $33.00 $31.00
Neal Dingmann Truist Securities Lowers Buy $35.00 $36.00
Subash Chandra Benchmark Maintains Buy $32.00 -
Subash Chandra Benchmark Maintains Buy $32.00 -
Biju Perincheril Susquehanna Maintains Positive $33.00 -
Mark Lear Piper Sandler Raises Overweight $34.00 $32.00
Devin McDermott Morgan Stanley Raises Equal-Weight $27.00 $26.00
Paul Cheng Scotiabank Raises Sector Outperform $45.00 $35.00
Betty Jiang Barclays Announces Overweight $35.00 -
Neal Dingmann Truist Securities Raises Buy $36.00 $35.00
Devin McDermott Morgan Stanley Raises Equal-Weight $26.00 $24.00
Neil Mehta Goldman Sachs Raises Neutral $30.00 $26.50
Nitin Kumar Mizuho Raises Neutral $31.00 $28.00
Derrick Whitfield Stifel Lowers Buy $36.00 $39.00
Bill Selesky Argus Research Announces Buy $31.00 -
Subash Chandra Benchmark Raises Buy $32.00 $25.00
Roger Read Wells Fargo Raises Overweight $36.00 $32.00
Josh Silverstein UBS Lowers Neutral $27.00 $28.00
Scott Hanold RBC Capital Maintains Outperform $33.00 -

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Marathon Oil. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Marathon Oil compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Marathon Oil's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Marathon Oil's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Marathon Oil analyst ratings.

Delving into Marathon Oil's Background

Marathon is an independent exploration and production company primarily focusing on unconventional resources in the United States. At the end of 2023, the company reported net proved reserves of 1.1 billion barrels of oil equivalent. Net production averaged 405 thousand barrels of oil equivalent per day in 2023 at a ratio of roughly 70% oil and NGLs and 30% natural gas.

Financial Insights: Marathon Oil

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, Marathon Oil faced challenges, resulting in a decline of approximately -1.85% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Marathon Oil's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 19.31%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Marathon Oil's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.66% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Marathon Oil's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.51% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.49, Marathon Oil adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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