The energy company reported first-quarter net income of $417 million, or 59 cents a share, down from year-earlier earnings of $996 million, or $1.39."Upgrading to Buy from Hold (TSR 26%)," Societe Generale analysts wrote in a report on Monday. "Our $33/share reflects a 5.3x P/DCFPS multiple for 2012, near the midpoint of its typical 2.9x-6.7x range, but a 20% discount to the peer group average, to account for MRO's higher risk profile from wildcatting and exploitation. MRO has an expected 2.5% dividend yield, offering a total expected return of 26% over the next year. The Street may be disappointed with volume escalation from unconventional exploitation plays. Like other E&Ps, the risks to our TP are volatile wellhead pricing, operating costs, and volatile legal, regulatory and tax policy." Forward Annual Dividend Yield: 2.6% -- Written by Alexandra Zendrian
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