Barclays upgrades Murphy Oil to Equal Weight on higher oil prices

Barclays upgraded Murphy Oil (MUR) to Equal Weight from Underweight with a price target of $33, up from $29. The firm increased 2026 oil price estimates on the Iran war and believes cash flow tailwinds for the exploration and production group remain underappreciated. While the oil spike is “unlikely to last for long,” the market is underappreciating the cash flow benefit and the “durable benefit” it will have on the group’s capacity to increase cash returns beyond the conflict, the analyst tells investors in a research note. Barclays views Murphy’s risk/reward as balanced with the shares having lagged the underlying oil beta in the Iran-driven rally.