Murphy Oil Upped to a “Buy” at Deutsche Bank (MUR)

Filed in dividend, Gold, Gold Investing, shares, upgrade by on May 12, 2010 0 Comments

Integrated oil company Murphy Oil Corporation ( MUR ) caught an upgrade on Wednesday from analysts at Deutsche Bank. The firm upgraded MUR to “Buy,” and set a $70 price target on the shares, which had closed at $55.78 on Tuesday. Deutsche analyst commented, “Murphy’s analyst meeting presented a confident and clearly competent management team unveiling a near term 9% annual growth target (2010-2013) with a longer-term aspiration to produce 400kb/d by 2020 – implying 7% compounded annual growth over the period 2010-2020. With 1bn barrels of exploration prospects in 2010, 9 wells remaining of which only 2 are in the Gulf of Mexico, sustained performance from major asset Malaysia, and $1bn of free cashflow in 2013, this stock is attractive at 9x 2011 P/E.” Murphy Oil shares fell 28 cents, or -0.5%, in premarket trading Wednesday. The Bottom Line We removed shares of MUR from our recommended list July 23, 2008, when the stock was trading at $79.59. The company has a 1.79% dividend yield, based on last night’s closing stock price of $55.57. The stock has technical support in the $51 price area. If the shares can firm up, we see overhead resistance around the $60 price level. We would remain on the sidelines for now. Murphy Oil Corporation ( MUR ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Murphy Oil Upped to a “Buy” at Deutsche Bank (MUR)

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