Murphy USA price target lowered to $525 from $550 at KeyBanc

KeyBanc lowered the firm’s price target on Murphy USA (MUSA) to $525 from $550 and keeps an Overweight rating on the shares. The firm notes Q1 EPS fell below Street estimates, pressured by a number of factors, including lower-than-expected retail fuel margins. In addition, fuel volumes were lower than expected, due to adverse weather, the Easter shift, the lapping of Leap Day, and a low overall retail fuel price environment. Q2-to-date trends have improved, with fuel volume flat to up slightly and higher retail fuel margins. KeyBanc maintains its positive long-term outlook for Murphy USA and the industry. However, for the next few quarters, it sees headwinds from low gas prices, competition in food, and tough Q2 nicotine comparable sales.