Marathon Petroleum (MPC) Stock Down, Oil Prices Drop
NEW YORK (TheStreet) -- Shares of Marathon Petroleum (MPC) - Get Report are down 1.88% to $36.05 late Thursday afternoon as oil prices continue to slip.
Crude oil (WTI) is down 0.17% to $48.11 per barrel, while Brent oil is falling 0.31% to $48.78 per barrel, CNBC reports this afternoon.
In addition, Marathon Petroleum was initiated with a "sell" rating at UBS, Barron's reports.
"We initiate coverage of U.S. refiners with cautious outlook," UBS analyst Spiro Dounis tells Barron's, adding that refiners "are no longer a safe place to wait out the oil downturn."
As a positive takeaway, "healthy" gasoline demands will support 2017 margins, but analysts "expect a rising Crude (oil) price to eventually compress refining margins that were supported by wide basis differentials that have now narrowed," Dounis says, according to Barron's.
Findlay, OH-based Marathon Petroleum is engaged in petroleum product refining, marketing, retail and transportation businesses in the U.S.
Separately, TheStreet Ratings rated Marathon Petroleum as a "hold" with a score of C.
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 articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels and notable return on equity. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: MPC
