BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - Raymond (NSE:RYMD) James downgraded Marathon Petroleum (NYSE:MPC) from Strong Buy to Outperform while simultaneously raising its price target to $200.00 from $188.00. The stock, currently trading at $175.63, has demonstrated impressive momentum with a 27.34% gain year-to-date and sits near its 52-week high of $183.31.
The downgrade comes despite the firm’s positive view on Marathon Petroleum’s execution of its strategic plan to improve asset-level returns and distribute cash to shareholders. The company has maintained dividend payments for 15 consecutive years, with a current yield of 2.07% and recent dividend growth of 10.3%.
Raymond James analyst Justin Jenkins noted that much of the company’s positive performance is already reflected in the current valuation of the stock.
The firm indicated it no longer sees the required 15% or greater upside potential necessary to maintain its previous Strong Buy rating on Marathon Petroleum shares.
The price target increase to $200.00 was based on updated estimates from the investment firm, suggesting continued confidence in Marathon Petroleum’s fundamentals despite the rating downgrade.
In other recent news, Marathon Petroleum reported a net loss of $0.24 per share for the first quarter of 2025, missing analysts’ expectations of $0.18 EPS. However, the company’s revenue slightly exceeded forecasts, coming in at $31.85 billion against a predicted $31.71 billion. Wolfe Research downgraded Marathon Petroleum from Outperform to Peerperform, noting that the stock’s strong performance has brought it close to fair value. Mizuho (NYSE:MFG) maintained a Neutral rating on the company, expecting small beats on both EBITDA and EPS compared to consensus estimates for the upcoming second-quarter results. Evercore ISI initiated coverage on Marathon Petroleum with an In Line rating, highlighting its strong cash flow generation and capital efficiency. Wolfe Research also raised its price target on Marathon Petroleum to $187.00, maintaining an Outperform rating and emphasizing the company’s low-cost structure and dividend growth. The company continues to focus on strategic investments in refining and infrastructure, with a commitment to a $1.25 billion capital plan for 2025, aiming for mid-single-digit EBITDA growth in its MPLX (NYSE:MPLX) segment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.