UPDATE: Societe Generale Downgrades Murphy Oil to Hold on Limited Upside
Societe Generale downgraded Murphy Oil (NYSE: MUR) from Buy to Hold with a $66 price target.
Societe Generale noted, "Since the middle of last year, the stock did react well to downstream and retail gasoline business restructurings, and initial buyback activity. In order to maintain a BUY under SG's system, we'd need to have an additional 10% upside, which given MUR's exploration program we think problematic. Certainly, the company has reduced its upstream drill bit risk profile, but this quarter's $200M pre-tax Congo impairment and $39.6M after-tax on ethanol demonstrated that legacy (and prior management) decisions still haunt MUR."
Murphy Oil closed at $62.80 on Wednesday.
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