NEW YORK (TheStreet) -- Marathon Oil (MRO) - Get Report stock is increasing 1.59% to $14.71 in afternoon trading on Tuesday, even though crude prices are down more than 1%, after Morgan Stanley analysts raised their rating on the oil and gas company's stock.

Before today's market open, the stock was upgraded to "overweight/attractive" from "equal weight" because of the recent $888 million acquisition of PayRock Energy.

The deal, which was announced on Monday, will boost Marathon Oil's position in Oklahoma's Anadarko Basin unconventional oil play, Real Moneyreports.

Additionally, Credit Suisse analysts raised their price target to $18.50 from $18 and maintained an "outperform" rating on the Marathon Oil's stock.

"The share price move today seems stronger than the initial risked value created from the deal, but reflects the fact that MRO shares were undervalued to start with, and perhaps reflects fears that MRO would overpay," Credit Suisse analysts explained in a note released this morning. 

Separately, Marathon Oil has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself, disappointing return on equity and feeble earnings per share growth.

You can view the full analysis from the report here: MRO

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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