Oppenheimer Reiterates "Outperform" Rating on Marathon Oil; Raises Price Target (MRO)

Oppenheimer Reiterates “Outperform” Rating on Marathon Oil; Raises Price Target (MRO)


Late on Tuesday, Oppneheimer & Co. backed its rating on Marathon Oil Corporation (MRO) due to the oil company’s positive cash-flow prospects.

The analysts maintained an “Outperform” rating on MRO and raised the price target from $40 to $45. This new valuation suggests a 26% upside to Tuesday’s closing price of $35.71.

“With an estimated free cash flow of $900M this year and $1.5B next year, MRO is among a very few cash-flow-positive E&P companies and intends to keep this distinction. Divestiture proceeds could double these amounts and provide MRO with additional financial flexibility to boost shareholder value,” said Oppenheimer analyst Fadel Gheit.

Marathon Oil shares were down 18 cents, or -0.50%, during pre-market trading on Wednesday. The stock is up about +6% over the past year.

The Bottom Line
Shares of Marathon Oil (MRO) have a dividend yield of 1.85% based on last night’s closing price of $35.71 and the company’s annualized dividend payout of 66 cents per share.

Marathon Oil Corporation (MRO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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