Instinet (Nomura) Downgrades Marathon Oil (MRO) to Hold

Instinet (Nomura) downgraded Marathon Oil (NYSE: MRO) from Buy to Hold with a price target of $19.00 (from $15.00), saying it's time to take a breather.

Analyst Lloyd Byrne commented, "We are reducing our rating on MRO to Neutral, based on valuation. The recent strength in the energy market and in MRO specifically has driven the stock to within 5% of our revised $19 target. Our positive case for MRO has been based on core onshore acreage being better than the market was willing to pay for, combined with management's ability to divest noncore assets and reinvest in these core onshore plays. Management has accomplished much of this. Based on our analysis, the market is assigning reasonable credit for MRO's onshore, and specifically its Anadarko basin position. Expectations have clearly risen. FY16E EBITDA at $(0.95); FY17E EBITDA at $(0.34)."

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

Shares of Marathon Oil closed at $18.20 yesterday.

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