RBC Capital lifts MPLX stock price target to $58, maintains Outperform

Published 17/03/2025, 15:04
RBC Capital lifts MPLX stock price target to $58, maintains Outperform

On Monday, RBC Capital Markets adjusted its price target on shares of MPLX LP (NYSE:MPLX), a large-cap master limited partnership (MLP) with a market capitalization of $55.28 billion, from $55.00 to $58.00, while reiterating an Outperform rating on the stock. The revision follows MPLX’s recent fourth-quarter 2024 earnings release and annual report. According to InvestingPro data, the company trades at a P/E ratio of 12.66 and has generated revenue of $11.13 billion in the last twelve months.

The firm’s analysts have updated their estimates for MPLX, emphasizing the company’s efforts to enhance its natural gas liquids (NGL) value chain. According to RBC Capital, MPLX stands out as an attractive income opportunity within the realm of large-cap MLPs, offering a current yield of 7.17%. InvestingPro data reveals that the company has maintained dividend payments for 13 consecutive years, with impressive dividend growth of 12.53% over the last twelve months.

RBC Capital’s analysts believe that MPLX is well-positioned to continue growing its distribution, citing the company’s substantial capital expenditure plans aimed at improving its NGL value chain as a key driver of this growth. The analysts’ confidence in MPLX’s potential is reflected in the increased price target, which is based on higher estimates and anticipated growth projects that extend beyond the firm’s forecasted period.

The endorsement from RBC Capital underscores MPLX’s strategic initiatives and their expected contribution to the company’s financial performance. With a focus on growing its NGL segment, MPLX is actively working to cement its position in the industry and deliver value to its investors.

MPLX’s commitment to expanding and enhancing its operations, as outlined in the recent earnings report and annual filing, has been acknowledged by RBC Capital as a solid foundation for the company’s future growth. The new price target and maintained Outperform rating signal the firm’s optimism about MPLX’s trajectory.

In other recent news, MPLX LP has reported several significant developments. The company announced the pricing of $2 billion in unsecured senior notes, with proceeds intended to manage existing debt obligations and fund general partnership purposes. MPLX has also secured full control of the BANGL pipeline through a $715 million acquisition, aiming to integrate this asset with its Gulf Coast fractionation complex. Furthermore, the company has filed its 2024 Annual Report with the SEC, detailing its financial performance over the past year.

In terms of analyst activity, Stifel has raised its price target for MPLX to $58 and maintained a Buy rating, following MPLX’s fourth-quarter results that exceeded expectations. Stifel also noted MPLX’s planned investment of $2.5 billion in downstream projects, which includes developing new fractionation facilities and expanding an NGL pipeline. Additionally, MPLX has entered into an underwriting agreement and added two supplemental indentures, enhancing its financial structuring. These recent developments reflect MPLX’s strategic initiatives and continued efforts to strengthen its financial foundation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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