FBR Capital Reaffirms Their Buy Rating on Marathon Oil

By Carrie Williams

In a report released today, Chad Mabry from FBR Capital reiterated a Buy rating on Marathon Oil (NYSE: MRO), with a price target of $20. The company’s shares opened today at $14.49.

Mabry said:

“We reiterate our Outperform rating and $20 price target on shares of Marathon Oil in advance of the much-anticipated OPEC meeting later this week. We believe that MRO represents a compelling buying opportunity as messaging has been constructive regarding extensions to the cartel’s cuts. Further, the Street remains uncharacteristically divided on MRO, with holds representing 55% of ratings (up from 50% last month), buys at only 42% (down from 50% last month), and short interest up slightly to 5.3%.”

According to TipRanks.com, Mabry is ranked 0 out of 5 stars with an average return of -18.9% and a 35.8% success rate. Mabry covers the Basic Materials sector, focusing on stocks such as Vanguard Natural Resources LLC, Contango Oil & Gas Company, and Mid-Con Energy Partners Lp.

Currently, the analyst consensus on Marathon Oil is Moderate Buy and the average price target is $18.91, representing a 30.5% upside.

In a report issued on May 16, Scotiabank also maintained a Buy rating on the stock with a $23 price target.

The company has a one year high of $19.28 and a one year low of $12.22. Currently, Marathon Oil has an average volume of 13.85M.

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Marathon Oil Corp. engages in the exploration, production, and marketing of liquid hydrocarbons and natural gas. It operates through the following segments: North America E&P, International E&P, and Oil Sands Mining. The North America E&P segment engages in the explores for, produces, and markets crude oil and condensate, natural gas liquids (NGL), and natural gas in the United States. The International E&P segment involves exploration, production, and marketing of crude oil and condensate, NGL and natural gas outside of North America; and production and marketing of products manufactured from natural gas such as liquefied natural gas and methanol in Equatorial Guinea. The Oil Sands segment includes mining, extraction, and transport of bitumen from oil sands deposits in Alberta, Canada, and the upgrade of bitumen to produce and market synthetic crude oil and vacuum gas oil. The company was founded in 1887 and is headquartered in Houston, TX.