UPDATE: Morgan Stanley Lowers PT on Murphy Oil to $90 (MUR)

Morgan Stanley is out with its report today on Murphy Oil

, lowering its PT to $90. In a note to clients, Morgan Stanley writes, "We re-examined our investment thesis after recent disappointments and analyst meetings. From current levels, we believe MUR will be a relative outperformer in 2011 and our re-rating thesis, while delayed, is intact. Following MUR's recent analyst day, our meetings with management, and conversations with industry experts, we addressed emerging debates. We see ~37% upside potential to our new $90 price target and limited downside without assuming any exploration success (with 30 exploration wells over the next 18 months). We expect refining sales to cause MUR shares to trade to at least 3.7x 2012 EBITDA, low end of E&P peers, up from 3.0x currently." Morgan Stanley maintains Overweight on MUR. At the time of posting, shares of MUR were trading at $65.38, down 0.50% from Monday's close.