UBS Upgrades Marathon Petroleum (MPC) to Buy

UBS upgraded Marathon Petroleum (NYSE: MPC) from Neutral to Buy with a price target of $63.00 (from $50.00).

Analyst Spiro Dounis comments "We upgrade MPC to Buy from Neutral as a result of MPC’s recently announced accelerated strategic review. Under the current plan MPC expects to drop $1.4bln in EBITDA-generating assets to MPLX by 1Q18, with $250mm expected to close during the current quarter. MPLX plans to fund dropdowns with 50/50 cash/equity at a 7.0x -9.0x multiple – a higher multiple than previously announced. A dropdown at the guidance midpoint suggests MPC would receive $11.2bln in cash/units from the dropdowns. Our assumptions are in-line with our MLP team’s MPLX forecast."

For an analyst ratings summary and ratings history on Marathon Petroleum click here. For more ratings news on Marathon Petroleum click here.

Shares of Marathon Petroleum closed at $47.71 yesterday.

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