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Investing.com - UBS raised its price target on Murphy Oil Corp. (NYSE:MUR) to $24.00 from $23.00 on Wednesday, while maintaining a Neutral rating on the stock. According to InvestingPro analysis, Murphy Oil is currently undervalued, with the company maintaining profitable operations over the last twelve months and a healthy dividend yield of 5.6%.
The price target increase follows Murphy Oil’s second-quarter 2025 update, which UBS described as positive, with cash flow per share and both oil and total production exceeding expectations.
Murphy Oil also improved its full-year 2025 volume outlook to the mid-point of its initial guidance range, marking an important volume beat after three consecutive quarters of production misses.
UBS noted that Eagle Ford and Montney well performance were the key drivers behind the improved production results in the quarter.
The firm maintained its Neutral stance on Murphy Oil stock but indicated that attention now shifts to the company’s high-impact offshore exploration activities, which create a catalyst-rich period extending into the first quarter of 2026.
In other recent news, Murphy Oil Corporation reported impressive financial results for the second quarter of 2025. The company posted earnings per share of $0.27, surpassing analysts’ expectations of $0.20, achieving a 35% positive surprise. Revenue also exceeded projections, reaching $683.06 million compared to the anticipated $646.92 million, a 5.59% increase. These results highlight Murphy Oil’s strong performance during this period. Despite the favorable earnings report, the stock experienced a decline of 2.07% during regular trading hours but showed a slight recovery in pre-market trading. The mixed investor sentiment reflects varying interpretations of the company’s financial health. Analysts will likely continue to monitor Murphy Oil’s performance in the coming quarters.
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