Murphy USA: Buy Rating Affirmed Amid Temporary Challenges and Recovery Potential

Wells Fargo analyst Anthony Bonadio maintained a Buy rating on Murphy USA (MUSA – Research Report) yesterday and set a price target of $520.00.

Anthony Bonadio has given his Buy rating due to a combination of factors, despite Murphy USA’s challenging first quarter. The company’s Q1 earnings per share fell short of expectations, primarily due to weaker fuel margins and lower gallons sold. However, Bonadio sees potential for improvement as fuel margins showed signs of recovery in April, benefiting from favorable pricing conditions.
Furthermore, while inside sales trends were disappointing, the company anticipates improvement in the coming months, particularly as promotional activities in tobacco products gain traction. Bonadio believes that the market’s reaction to the Q1 results was excessive and views the current stock price as an attractive entry point. He maintains confidence in the company’s ability to achieve its 2025 guidance, suggesting that the current challenges are temporary and that the overall business model remains robust.

In another report released on April 25, Jefferies also maintained a Buy rating on the stock with a $590.00 price target.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MUSA in relation to earlier this year.