S&P Capital IQ Reiterates its BUY Rating on Marathon Petroleum, Target Price Reduced

October 21 00:00 2011

NEW YORK, October 21 (RainbowNewsLine.com) – Analyst Tanjila Shafi of S&P Capital IQ maintains BUY rating on the shares of Marathon Petroleum Corp (NYSE:MPC). The 12-month target price has been reduced from $50 to $43.

Analyst Tanjila Shafi, in a research note published yesterday mentions that the company can benefit from the West Texas intermediate, which is trading at a deep discount to waterborne crudes. The analyst believes that MPC has capacity to access discounted crude sources, thus reducing its feedstock costs. The EPS estimates for Q3, Q4 and 2011 have been raised from $1.68 to $2.36, from $1.29 to $1.64 and from $6.70 to $7.73, respectively due to higher margins.