MPLX LP (MPLX) Price Target Cut Slightly, Rating Stays 'Overweight'

MPLX LP (NYSE:MPLX) is among the most profitable oil stocks to buy now. Analysts at Wells Fargo have reiterated their ‘Overweight’ rating on MPLX LP (NYSE:MPLX), while cutting the price target to $59.00 from $60.00, implying a potential surge of about 18%. This 1.67% price target reduction is driven by the company’s recent sale of its Rockies gathering and processing (G&P) assets.

The research firm believes that this transfer of assets could impact the company’s future earnings, particularly the EBITDA. Additionally, the firm noted that higher outstanding debt from recent issuances will have a slightly adverse impact on MPLX LP (NYSE:MPLX).

Keeping this in mind, the overall positive outlook of MPLX LP (NYSE:MPLX) can’t be overlooked. With a solid 7.46% forward dividend yield, the company appears to be a compelling investment opportunity, exhibiting strong distribution coverage and robust growth in distributable cash flow.

MPLX LP (NYSE:MPLX), based in Findlay, Ohio, is a midstream energy infrastructure and logistics assets company operating through two segments: Crude Oil and Products Logistics, and Natural Gas and NGL Services. Incepted in 2012, the company is focused on seamlessly connecting energy sources to markets.

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