KeyBanc Analyst Raises Murphy Oil Price Target by 8%, Maintains Strong Buy Rating

KeyBanc's Tim Rezvan raised their price target on Murphy Oil (NYSE: MUR) by 8% from $50 to $54 on 2024/04/22. The analyst maintained their Strong Buy rating on the stock.

In a Q1 2024 preview note on names in their Oil & Gas (Exploration & Production) portfolio, Rezvan explained that the price target adjustment for Murphy Oil was based on several factors. The analyst anticipates rising oil prices driven by increasing geopolitical risk, a flattening of U.S. production, and declining inventories of refined products in the United States.

Regarding natural gas, Rezvan expects prices to decline due to strong production, bloated inventories, and debottlenecking that will occur in the second half of 2024.

In addition to the update on Murphy Oil, Rezvan also made adjustments to other companies in their portfolio. The price target for Diamondback Energy Inc was raised by 7.1% from $210 to $225, while Kimbell Royalty Partners LP saw a 5% increase from $20 to $21. Vital Energy Inc received a 14.5% boost from $55 to $63, Talos Energy Inc's target was raised by 5% from $20 to $21, and Sitio Royalties Corp saw a 7.4% increase from $27 to $29. In each case, the analyst maintained their Strong Buy rating.

Currently, 71.4% of top-rated analysts view Murphy Oil as a Strong Buy or Buy, while 28.6% consider it a Hold. No analysts recommend or strongly recommend selling the stock.

According to the consensus forecast among analysts, Murphy Oil is expected to deliver earnings per share (EPS) of $6.71 in the upcoming year. If these predictions hold true, the company's next yearly EPS will experience a 57.4% increase year-over-year.

Since Murphy Oil's last quarterly report on December 31, 2023, the stock price has risen by 7.9%. On a year-over-year basis, the stock has increased by 22.7%. During this period, Murphy Oil has outperformed the S&P 500, which has grown by 21.1%.

KeyBanc analyst Tim Rezvan stands in the top 19% of Wall Street analysts, according to WallStreetZen. With an average return of 5.2% and a win rate of 50.7%, Rezvan specializes in the Utilities and Energy sectors.

Murphy Oil Corporation, headquartered in Houston, TX, is engaged in the production of crude oil, natural gas, and natural gas liquids. The company operates primarily in the U.S., Canada, and targeted areas globally, with a focus on fields in the Gulf of Mexico and the Eagle Ford Shale area of South Texas. Founded in 1950, Murphy Oil has a longstanding presence in the energy industry.

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