EU and US could reach trade deal this weekend - Reuters
Investing.com - TD Cowen has raised its price target on Marathon Petroleum (NYSE:MPC) to $190.00 from $163.00 while maintaining a Buy rating on the stock. The company, currently trading at $176.18 and showing a robust 26.8% year-to-date return, appears slightly undervalued according to InvestingPro analysis.
The firm continues to rate Marathon Petroleum as its top pick within the refining group, citing underlying earnings growth from its MLP, solid refining execution, and changing expectations around slowing buybacks in the near term due to recent commodity strength. InvestingPro data reveals the company has been aggressively buying back shares while maintaining a 15-year streak of consistent dividend payments, with a current yield of 2.08%.
TD Cowen forecasts approximately $4.6 billion in refining and marketing margin for the second quarter of 2025, representing 102% capture on the roughly $4.5 billion published indicator. The firm estimates $850 million in share repurchases for Q2 2025, marking a $200 million quarter-over-quarter decline.
For fiscal year 2026, TD Cowen models $2 billion in share repurchases, representing a 6% return yield. The firm noted that Marathon’s results were impacted by strength in Rockies and Pacific Northwest margins, slightly offset by a fire affecting the company’s Galveston Bay hydrotreater.
Marathon Petroleum discussed exploring how to push barrels east from the Midcontinent, interest in Gulf Coast organic expansions, and potential petrochemical bolt-on opportunities during its Investor Event last month. With a market capitalization of $54.08 billion and a solid financial health score, the company is well-positioned for these initiatives. For comprehensive analysis and additional insights, access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
In other recent news, Marathon Petroleum’s upcoming second-quarter earnings report is drawing attention, with Mizuho (NYSE:MFG) maintaining a Neutral rating and projecting small beats on both EBITDA and EPS compared to consensus estimates. This expectation is attributed to higher crack spreads, despite some offsetting factors like lower capture rates and higher volumes. Meanwhile, Wolfe Research has downgraded Marathon Petroleum from Outperform to Peerperform, citing the stock’s strong performance and proximity to what they consider fair value. Similarly, Raymond (NSE:RYMD) James downgraded the stock from Strong Buy to Outperform, even as they raised the price target from $188.00 to $200.00, reflecting a positive view on the company’s strategic execution. Evercore ISI has initiated coverage with an In Line rating, highlighting Marathon’s advantageous position in cash flow generation and capital efficiency. Wolfe Research also adjusted its price target slightly upward to $187.00 while maintaining an Outperform rating, noting the company’s 17% outperformance compared to the Energy Select Sector SPDR Fund this year. These developments indicate a mix of cautious optimism and strategic positioning among analysts regarding Marathon Petroleum.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.