Marathon Petroleum’s stock surges after Cowen analyst turns bullish and raises price target

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Shares of Marathon Petroleum Corp. rallied 3.0% in premarket trading Wednesday, after Cowen analyst Jason Gabelman upgraded the oil refining, marketing and transportation company, saying he believes the market is underappreciating the capitalization improvement as a result of the $21 billion sale of its Speedway convenience-store chain, which was announced earlier this month. Gabelman raised his rating to outperform, after being at market perform since May 2019, and boosted his stock price target to $43 from $37. “We see 15% upside from equity today on the deal itself, in-line with upside to other large cap peers,” Gabelman wrote in a note to clients. “However, we see additional upside not contemplated in our price target and independent of improving refining margins or crude differentials. This includes restructuring opportunities that could be particularly attractive if the long-term margin outlooks dims and a potential cost-cutting program to bring opex more in-line with peers.” The stock has tumbled 38.7% year to date through Tuesday, while the SPDR Energy Select Sector ETF has shed 36.4% and the S&P 500 has gained 3.2%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.