BofA upgrades Murphy USA to Neutral amid volatile fuel prices

As previously reported, BofA analyst Lisa Lewandowski upgraded Murphy USA (MUSA) to Neutral from Underperform with a price target of $550, up from $350. Fuel prices are volatile again and history shows that fuel price swings create outsized upside opportunity for fuel margins and EPS given Murphy’s low-cost operating model, says the analyst, who is raising the firm’s 2026-28 EPS estimates by 26%, 18% and 11%, respectively, as BofA sees continued volatility, higher prices and increased traffic benefitting the company’s fuel operations.