Jefferies reiterated a Buy rating on Murphy USA (NYSE: MUSA), and raised the price target to $76.00 (from $74.00), following the company's 1Q earnings report. MUSA posted an adjusted EPS of $0.72, ahead of the consensus estimate of $0.52. The beat is attributed to solid fuel volumes, robust merchandise sales, meaningful merchandise margin expansion, and effective cost controls.

Analyst Christopher Mandeville commented, "MUSA reported a strong 1Q16 with solid sales and margins. Notably, its new supplier contract helped drive a 126bp lift to merch. margins, well ahead of our expectations. We continue to like MUSA as our preferred c-store name given an A-grade mgmt., company-specific initiatives to drive fuel margins, a variety of moves to expand merch. margins, peer leading ROIC, and its commitment to enhancing shareholder returns via buyback."

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

Shares of Murphy USA closed at $65.30 yesterday.