Marathon Petroleum Beats Energy Sector, Price Target Raised by Wolfe Research

Marathon Petroleum Corporation (NYSE:MPC) is one of the 10 most undervalued oil stocks to buy according to analysts. On June 11, Wolfe Research maintained its Outperform rating on Marathon Petroleum Corporation (NYSE:MPC) while increasing its price target to $187 from $186.

In keeping with its larger refining competitors, Marathon Petroleum Corporation (NYSE:MPC) has outperformed the Energy Select Sector SPDR Fund by about 17% year-to-date. According to Wolfe Research, the second quarter is a seasonal turning point for margins, but there are still potential challenges, including tight crude differentials.

The firm emphasized that Marathon Petroleum Corporation (NYSE:MPC) has one of the lowest cost structures in the industry and that Marathon’s 64% ownership holding in MPLX reduces the volatility of refining margins. Marathon has repurchased around 45% of its outstanding shares since the start of 2022, at a rate that will retire an additional 4% at present rates by the end of this year.

Additionally, the research firm pointed out that Marathon Petroleum Corporation (NYSE:MPC) remains hopeful about the refining environment as announcements of closures in key regions commence, especially on the West Coast.

With 13 refineries and a daily crude oil capacity of almost 3 million barrels, Marathon Petroleum Corporation (NYSE:MPC) is a prominent integrated downstream energy corporation that manages the largest refining system in the United States.

While we acknowledge the potential of MPC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.