Goldman Sachs Resumes Murphy Oil Corp. (MUR) at Neutral

Goldman Sachs resumed coverage on Murphy Oil Corp. (NYSE: MUR) with a Neutral rating and a price target of $53.00.

Analyst Brian Singer said, "MUR has four key characteristics: (1) strong 2015 growth, which we do not view as sustainable; (2) poor exploration track record, which needs to be reversed in our view to avoid underperformance; (3) below-average Eagle Ford well performance before adjusting for well costs; and (4) a low EV/DACF multiple relative to IDOs, reflective in our view of MUR’s short resource life. Our Neutral rating considers that the contributions from MUR’s favorable near term growth combined with its low multiple offset the negatives of its Eagle Ford performance/asset quality and recent exploration track record. We believe 2015 will be a key year for MUR to show improvement in longer-term production visibility or risk underperformance in future years."

For an analyst ratings summary and ratings history on Murphy Oil Corp. click here. For more ratings news on Murphy Oil Corp. click here.

Shares of Murphy Oil Corp. closed at $44.92 yesterday.

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