Jefferies analyst Corey Tarlowe maintained a Buy rating on Murphy USA (MUSA – Research Report) today and set a price target of $590.00.
Corey Tarlowe has given his Buy rating due to a combination of factors that highlight Murphy USA’s strong market position and growth prospects. The company is experiencing consistent demand trends, with stable fuel margins that are expected to increase over time. This stability is supported by Murphy USA’s ability to capture fuel market share and drive in-store sales growth, particularly in both nicotine and non-nicotine categories.
Additionally, Murphy USA is set to accelerate its unit growth strategy in 2025 by focusing on opening new stores, which is anticipated to enhance sales and EBITDA. The company’s strategic focus on expanding in key markets such as Texas, Florida, the Carolinas, and Denver further supports its growth outlook. Despite competitive pressures in the quick-service restaurant sector, Murphy USA’s outlook suggests a promising EBITDA growth of around 5% at the mid-point for 2025, driven by merchandise contribution and fuel volume increases.
According to TipRanks, Tarlowe is a 5-star analyst with an average return of 14.4% and a 58.08% success rate. Tarlowe covers the Consumer Cyclical sector, focusing on stocks such as Abercrombie Fitch, Costco, and TJX Companies.