MPLX stock rating reiterated at Outperform by RBC Capital ahead of Q2 earnings

Investing.com - RBC Capital has reiterated an Outperform rating and $58.00 price target on MPLX LP (NYSE:MPLX) ahead of the company’s second-quarter earnings report. According to InvestingPro data, the stock currently trades near its 52-week high of $54.87, with analyst targets ranging from $50.43 to $64.00.

MPLX is scheduled to release its Q2 2025 financial results before the market opens on Tuesday, August 5, followed by a conference call at 9:30 AM ET. InvestingPro analysis shows the company maintains strong financial health with a "GOOD" overall rating and has demonstrated consistent profitability over the last twelve months.

RBC Capital analyst Elvira Scotto lowered quarterly estimates for the company after discussions with investor relations, noting both headwinds and tailwinds affecting the upcoming results.

Despite the adjusted estimates, RBC Capital continues to view MPLX as one of the most attractive yield plays in its coverage universe.

The firm highlighted MPLX’s current yield of more than 7%, which RBC expects to grow by 12.5% over the next few years.

In other recent news, MPLX LP reported strong financial results for the first quarter of 2025, with earnings per share reaching $1.10, surpassing analyst expectations of $1.08. The company also reported revenue of $3.12 billion, exceeding the anticipated $3.01 billion. MPLX demonstrated a 7% year-over-year increase in Adjusted EBITDA to $1.8 billion, highlighting its robust performance amidst market fluctuations. The company completed significant infrastructure projects, including the Bengal pipeline expansion, which has bolstered its capacity. Furthermore, MPLX announced strategic acquisitions, such as interests in the BANGL NGL pipeline system and gathering businesses from Whiptail Midstream, anticipated to be immediately accretive. Stifel analysts maintained a Buy rating on MPLX while slightly adjusting the stock price target to $57, citing the company’s resilience and strategic asset deployment. The firm’s commitment to sustaining double-digit distribution growth was emphasized, alongside its strategic relationship with Marathon Petroleum Corporation (NYSE:MPC). MPLX’s capital investment strategy focuses on large-scale projects under contract, aligning with immediate business needs.

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