Morgan Stanley's analyst Devin McDermott has revised the price target for Murphy Oil (MUR, Financial), bringing it down from $32 to $27 while maintaining an Underweight rating on its shares. This adjustment comes as part of a broader reevaluation of the firm's North American energy coverage, influenced by recent declines in oil prices.
The updated projections see cash flow forecasts for 2025-2026 falling below prevailing market consensus. The firm now expects a more significant discount to net asset value based on implied multiples, particularly affecting small and mid-cap producers and those with execution challenges.
Overall, Morgan Stanley maintains an In-Line outlook for the exploration and production industry, reflecting a cautious stance due to ongoing weak oil market fundamentals in the near-to-medium term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Murphy Oil Corp (MUR, Financial) is $32.69 with a high estimate of $46.00 and a low estimate of $22.00. The average target implies an upside of 60.35% from the current price of $20.39. More detailed estimate data can be found on the Murphy Oil Corp (MUR) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Murphy Oil Corp's (MUR, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Murphy Oil Corp (MUR, Financial) in one year is $34.69, suggesting a upside of 70.17% from the current price of $20.385. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Murphy Oil Corp (MUR) Summary page.
