Benchmark Upgrades Marathon Oil (MRO) to Buy,. 'Potent Buyback Potential'
Benchmark analyst Subash Chandra upgraded Marathon Oil (NYSE: MRO) from Hold to Buy with a price target of $32.00.
The analyst comments "Reserve growth of 21% exceeded our forecast. While we don’t know the line items, we suspect every category contributed. For instance, relatively dormant plays in the last report sprung to life this year. Delaware volumes surged in 4Q for instance. Our $32 PT implies an EV/EBITDA(23E) multiple of 4.7x, which we believe is well-earned given a 11% FCF yield and potential exposure to global LNG prices when the current HH-linked EG contract expires this year."
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Shares of Marathon Oil closed at $26.07 yesterday.