Murphy USA downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst John Royall downgraded Murphy USA to Underweight from Neutral with a price target of $435, up from $415. The company has benefited significantly from industry fuel margin increases, particularly given its group-high exposure to fuel, the analyst tells investors in a research note. However, at share current levels, the firm thinks the market is baking in a higher fuel margin than its view of long-term mid-cycle and even above Murphy’s own target. The stock’s valuation, both relative to the company’s history and relative to peers, “has stretched to unsustainable levels,” contends JPMorgan.