Murphy USA Initiated With Sector Perform at RBC Capital

RBC Capital analysts initiated coverage on Murphy USA Inc. (NYSE:MUSA) with a Sector Perform Rating and a $360 price target.

The analysts believe the company’s strategy is straightforward, effective, and attractive. It aims to maintain its price leadership, increase volume and market share by leveraging its downstream and midstream capabilities, and allocate capital in a way that expands its convenience and fuel offerings while also returning a significant portion of free cash flow to shareholders.

The analysts’ Sector Perform rating reflects the potential impact of gas margins, the size and price of buybacks, the company's relative position in the market, and its reliance on fuel and tobacco for revenue.