Marathon Oil (MRO) Stock Price: $38 Target And Buy Rating

By Amit Chowdhry ● Jun 7, 2022
  • The shares of Marathon Oil (NYSE: MRO) have received a $38 price target from Mizuho Securities. These are the details.

The shares of Marathon Oil (NYSE: MRO) have received a $38 price target from Mizuho Securities. And Mizuho Securities analyst Vincent Lovaglio increased the price target on Marathon Oil from $35 while maintaining a “Buy” rating on the shares.

The rating was adjusted following the company’s first-quarter results reported last month. Marathon Oil had reported a Q1 EPS of $1.02, which was $0.10 higher than analyst estimates of $0.92. And the revenue for the quarter was $1.75 billion compared to the consensus estimate of $1.71 billion.

In terms of guidance, Marathon Oil’s original 2022 financial outlook included over $3 billion of adjusted free cash flow generation at a reinvestment rate of less than 30% on a $1.2 billion capital budget, assuming $80/bbl WTI and $4/MMBtu Henry Hub. And at $100/bbl WTI and $6/MMBtu Henry Hub, the company expects to generate over $4.5 billion of 2022 adjusted free cash flow at a reinvestment rate of approximately 20% on an inflation-adjusted capital budget of $1.3 billion. The 2022 production guidance remains unchanged, as the company continues to expect oil and oil-equivalent production to remain flat with the 2021 averages. Plus the company is also raising its 2022 E.G. equity income guidance by $200 million, to a new range of $480 million to $520 million.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.