What’s Wall Street’s Forecast for Marathon Oil?
Key for Investors: Marathon Oil’s Earnings Fell in Fiscal 3Q15
Consensus ratings for Marathon Oil
In this series, we discussed that Marathon Oil’s (MRO) stock reacted mildly negatively after the earnings release for the last quarter. Now, let’s look at Wall Street’s forecasts for Marathon Oil following its fiscal 3Q15 earnings release.
It’s important to note that ~55% of the analysts tracking Marathon Oil rate it a “buy” or some equivalent. Meanwhile, ~41% rate the company a “hold” or some equivalent. The remaining 4% of the analysts recommend a “sell.” Marathon Oil accounts for 0.2% of the SPDR S&P 500 ETF (SPY).
In comparison, ~55% of analysts tracking Continental Resources (CLR) rate it a “buy” or some equivalent. Meanwhile, 42% of the analysts rate it a “hold.” Only 3% of the analysts rate it a “sell.”
Analysts’ targets for Marathon Oil
Here are Wall Street analysts’ target prices for Marathon Oil following its fiscal 3Q15 financial results. When it comes to individual recommendations, BMO Capital Markets, the investment banking subsidiary of Canadian Bank of Montreal, gave Marathon Oil a target price of $22. Currently, Marathon Oil trades near $19. This implies an ~16% return over the next 12 months. Scotia Howard Weil is an energy investment firm. It gave Marathon Oil a target price of $25. This implies a 32% return over the next 12 months.
Investment bank Goldman Sachs (GS) gave Marathon Oil a 12-month target of ~$21.50—one of the lowest target prices. This implies a 13% return from Marathon Oil over the next 12 months. Morgan Stanley (MS) gave 12-month target price for Marathon Oil of $29—one of Marathon Oil’s highest target prices. This implies a 53% return at Marathon Oil’s current price. UBS is part of UBS Group AG (UBS). It gave Marathon Oil a one-year target price of $23. This implies a 21% return over the next 12 months.
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