UPDATE: Raymond James Upgrades Murphy USA (MUSA) to Outperform
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Raymond James analyst Bobby Griffin upgraded Murphy USA (NYSE: MUSA) from Market Perform to Outperform with a price target of $165.00.
The analyst comments "We are upgrading MUSA from a Market Perform to an Outperform rating and establishing a $165 target price. CY21 industry fuel margins are trending nicely above CY19, despite rising oil prices, illustrating smaller operators are leaving more margin at the pump to offset other cost pressures (labor, lower volumes, etc.). In our view, this type of operating environment leaves Murphy in a great position to drive customer and market share gains, but also achieve better than historical fuel margins, given the company’s low price leadership and low fuel breakeven points versus peers. Longer-term, Murphy’s recent QuickChek acquisition is still in the very early stages of integration and should enable Murphy to better expand its F&B offering over time (top-line and margin upside). With MUSA currently trading at ~8x our 2021 adj. EBITDA estimate versus its ~9x 3-year median multiple and the industry peer average of ~9x, we see an attractive entry point and positive risk/reward scenario."
Shares of Murphy USA closed at $143.74 yesterday.
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