TSX jumps amid Fed rate cut hopes, ongoing U.S. government shutdown
Investing.com - KeyBanc has reiterated its Overweight rating on Murphy USA (NYSE:MUSA) stock, maintaining its price target of $480.00. The target represents significant upside potential from the current stock price of $373.64, with analyst targets ranging from $350 to $600.
The firm’s decision follows recent investor meetings with the company, after which KeyBanc came away "incrementally positive" about Murphy USA’s prospects. The company, currently valued at $7.2 billion, has demonstrated strong financial performance with $17.1 billion in revenue and a healthy return on equity of 67% over the last twelve months. According to InvestingPro, management has been actively buying back shares, showing confidence in the company’s future.
KeyBanc noted that Murphy USA remains "a compelling LT SMID growth story," supported by its everyday low price market positioning, supply chain efficiencies, and square footage growth that is ramping to 5.5-6.0%.
The firm acknowledged the current challenging economic backdrop but believes some transitory headwinds from the first half of the year should reverse in the second half.
KeyBanc also pointed to Murphy USA’s P/E multiple decline from 21x to 15x, suggesting this creates "a more compelling entry point for investors" in the stock.
In other recent news, Murphy USA reported its second-quarter 2025 earnings, which showed an earnings per share (EPS) of $7.36, surpassing the forecasted $6.77. However, the company’s revenue did not meet expectations, coming in at $5.01 billion compared to the anticipated $5.13 billion. Additionally, Murphy USA announced a 6% increase in its quarterly dividend to $0.53 per share, resulting in an annualized dividend of $2.12 per share. This dividend will be payable to stockholders on September 4, 2025. Meanwhile, Jefferies downgraded Murphy USA’s stock rating from Buy to Hold, citing a slower growth outlook for the company’s EBITDA forecast for 2024-2028. Jefferies also reduced its price target for the stock from $560.00 to $350.00. These developments provide investors with a comprehensive view of Murphy USA’s recent performance and future expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.