On Friday, Mizuho Securities updated its assessment of Marathon Petroleum Corp (NYSE:MPC), a leading refining company, adjusting the price target slightly upward to $202 from the previous $201. The firm retained a Neutral rating on the stock.
The
adjustment followed an analysis of the company's first-quarter performance,
which indicated a decline in refining earnings due to increased maintenance
activities. These activities led to reduced utilization rates and a narrower
Refining & Marketing (R&M) margin, with a capture rate of approximately
94% compared to around 122% seen in the fourth quarter of 2023.
Marathon
Petroleum's crude utilization was reported at 83%, which aligns with the
guidance and consensus estimates. Mizuho projected the company's refining
EBITDA (earnings before interest, taxes, depreciation, and amortization) for
the first quarter of 2024 to be $1.82 billion, surpassing the consensus
estimate of $1.68 billion. In the Midstream sector, the firm's model
anticipates an EBITDA of $1.58 billion, slightly above the consensus of $1.56
billion.
The
overall estimate for Marathon Petroleum's EBITDA and earnings per share (EPS)
by Mizuho stands at $3.405 billion and $2.43 respectively. These figures
compare to the consensus estimates of $2.88 billion for EBITDA and $2.45 for
EPS.
The
minor increase in the price target reflects the adjustments based on the firm's
net asset value (NAV) calculations, which resulted in a new target of $202 per
share from the former $201 per share.
Investing Pro Insights
Marathon
Petroleum Corp (NYSE: MPC) has shown robust performance metrics as per the
latest data from Investing Pro. With a market capitalization of $76.49 billion
and an attractive price-to-earnings (P/E) ratio of 8.92, which adjusts to an
even more favourable 8.12 when considering the last twelve months as of Q4 2023,
the company stands out in the Oil, Gas & Consumable Fuels industry.
Moreover, the company's strong revenue of $149.35 billion, despite a decrease
in growth, showcases its significant market presence.
Investing
Pro Tips highlights the company's aggressive share buyback strategy and high
shareholder yield, both indicative of management's confidence in the company's
financial health and commitment to returning value to shareholders.
Additionally, the fact that 9 analysts have revised their earnings upwards for
the upcoming period suggests a positive outlook on the company's future
performance. The company has also been able to maintain dividend payments for
14 consecutive years, with a recent dividend yield of 1.52% and a growth of
10.0% in the last twelve months as of Q4 2023.
These
financial strengths are further substantiated by Marathon Petroleum's solid
returns, with a 70.37% one-year total return and a price currently near its
52-week high, at 98.13% of that peak. Investors seeking to delve deeper into
Marathon Petroleum's prospects can find additional insights, including the
company's low price volatility and strong return over the last five years, on
Investing Pro. With 19 more InvestingPro Tips available, users can gain a
comprehensive understanding of the stock's potential.
https://www.investing.com/news/company-news/mizuho-raises-marathon-petroleum