Wells Fargo Starts Marathon Oil with an “Outperform” Rating (MRO)
Analysts at Wells Fargo initiated coverage on Marathon Oil Corporation (MRO) on Friday.
The analysts start MRO off with an “Outperform” rating and value the company in the $38 to $42 range. That valuation is roughly a 30% upside from Thursday’s closing price of $30.69.
Wells Fargo commented, “Our rating highlights our confidence that Marathon’s core reserves and production in the Eagle Ford shale and other unconventional plays paired with its conventional international and deepwater opportunities will allow it to increase annual production and cash flows while generating attractive returns. We value Marathon on a net asset value (NAV) basis, which is consistent with how we value its peer group.”
Marathon Oil shares were flat in premarket trading on Friday. The stock is up +5.83% year-to-date.
The Bottom Line
Shares of Marathon Oil (MRO) have a 2.15% dividend yield, based on last night’s closing stock price of $30.69. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.
Marathon Oil Corporation (MRO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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