RBC Capital maintains buy on Marathon Oil with a $33 price target
Investing.com | Editor Nikhilesh Pawar
Published Nov 17, 2023 11:52AM ET
HOUSTON - Marathon Oil Corporation (NYSE: NYSE:MRO), set a price target of $33, as the company's shares ended the day at $24.75. Contributes to the broader market consensus that labels MRO as a Strong Buy with average targets around $34.66, indicating a considerable upside potential from current levels.
Marathon Oil, an oil and gas exploration firm operating in the U.S., Equatorial Guinea, and the UK markets, has recently intensified its shareholder return program. The company has escalated its share buyback program to $2.5 billion and increased its quarterly dividend payout to 11 cents per share. This move comes amidst an uptick in insider sales, including Executive Vice President & CFO Dane E Whitehead, who sold shares valued at over $1 million.
On the performance front, MRO received an InvestorsObserver score of 54 today, surpassing more than half of its peers with an Energy sector rank of 81. The sector is leading across eleven industries. MRO's shares saw an increase of $0.46 or 1.86% to settle at $25.21, contrasting the S&P 500's slight drop by -0.14%, amidst a surge in trading volume to 459,928 shares. Despite the broader market's growth spurt by roughly 14%, MRO recorded a decline nearing -20% annually.
With annual earnings per share at $2.70, MRO's price-to-earnings (P/E) ratio was calculated at just over nine (9.33), suggesting a potentially undervalued stock compared to industry peers.
Earlier this month, Scotiabank also backed Marathon Oil with a Buy recommendation and raised the price objective to $38, further bolstering investor confidence in the company's stock performance prospects.
The collective endorsements from RBC Capital and Scotiabank highlight Marathon Oil as a notable player in the energy sector with strong buy recommendations amid market challenges and strategic initiatives aimed at enhancing shareholder value.
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