OVV - Mizuho raises Murphy to buy - leverage to higher oil prices

Mizuho upgraded Murphy (NYSE:MUR) to buy this morning, after the shares lagged peers following mixed earnings results released January 27th. With peak capex in 2022, cash flow inflects in 2023+, and at strip pricing the Company has one of the highest payout capacities in the sector, trailing only Occidental (NYSE:OXY) and Ovintiv (NYSE:OVV), according to Mizuho. The analyst raises his price target to $42, indicating shares have 32% upside from Thursday's closing price. With oil prices reaching multi-year highs, and large-cap Canadian names like Suncor (NYSE:SU) and Cenovus (NYSE:CVE) underwhelming investors, Murphy is one of few conventional E&Ps outside of Canada and the shale patch to benefit from low tax-and-royalty headwinds in a higher price environment.

For further details see:

Mizuho raises Murphy to buy - leverage to higher oil prices