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."

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Shares of Marathon Petroleum closed at $47.71 yesterday.