12:15 PM EDT, 05/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

MRO has agreed to be acquired by ConocoPhillips (COP 114 ***) in an all-stock deal valued at $22.6B (including assumed debt) that is expected to close by Q4. Each share of MRO will be exchanged for 0.255 shares of COP stock, a 15% premium for MRO shareholders. Accordingly, we lift our 12-month target for MRO by $4 to $32, based on our 12-month target of $125 for COP at 0.255/share exchanged for each outstanding MRO share. Our revised 12-month target for MRO reflects a 5.0x multiple of EV to projected '25 EBITDA, above MRO's historical average. We keep our standalone '24 EPS view at $2.82 and '25's at $3.20. Based on Tuesday's close, we estimate the deal at an EV/EBITDA multiple of 4.8x, a 2% premium to MRO's five-year historical average (4.7x). We are unsurprised by the announcement, given the multiple M&A deals across the E&P space as of late. Nonetheless, we think MRO shareholders could be rewarded in the long run, given COP's history of robust shareholder returns in the form of dividends and buybacks.