Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - UBS has reiterated its Buy rating on Marathon Petroleum (NYSE:MPC), a $48.5 billion market cap refiner, with a price target of $203.00, citing stronger crack spreads and wider Western Canadian Select (WCS) crude differentials. According to InvestingPro data, the stock currently trades below its Fair Value, with analyst targets ranging from $142 to $213.
The investment bank revised its 2025 earnings per share estimate for Marathon Petroleum to $8.14 from $7.08, reflecting the company’s second-quarter 2025 earnings beat, which was 31% above UBS estimates. The company maintains a FAIR financial health score, with strong profitability metrics over the last twelve months.
UBS noted that Marathon Petroleum remains one of the largest consumers of WCS crude in its inland refining system, positioning the company to benefit from current market conditions.
The WCS discount to West Texas Intermediate (WTI) crude has widened to approximately $13 per barrel, compared to an average of about $10.27 per barrel in the second quarter of 2025.
UBS expects this wider differential to create "meaningful earnings tailwind" for Marathon Petroleum in the third quarter of 2025, which should offset slightly weaker quarter-over-quarter West Coast crack spreads that have declined $2.82 per barrel quarter-to-date compared to the second quarter.
In other recent news, Marathon Petroleum Corporation reported impressive financial results for the second quarter of 2025. The company exceeded market expectations with an earnings per share of $3.96, surpassing the projected $3.11. Additionally, Marathon Petroleum’s revenue reached $34.1 billion, outperforming the anticipated $33.04 billion. These results highlight the company’s strong performance in recent months. Despite the positive earnings and revenue figures, the stock experienced a slight pre-market dip. Investors will likely be analyzing these results closely as they consider their positions. The earnings beat demonstrates Marathon Petroleum’s ability to navigate market conditions effectively. These developments are part of the company’s ongoing financial journey.
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