Banc of America raised its target on Murphy Oil (MUR ).
Analyst Tyler Dann says Murphy's continues to shape itself as a premier growth story among integrated oils through its Malaysian expansion. He sees improved long-term growth prospects after Murphy's announced the discovery of new oil in the Kikeh Kecil #1 well, offshore Malaysia.
Dann raised the $55 target to $60, and reiterates his strong buy rating. He thinks the Kecil discovery, and other nearby prospects, raise the potential in Malaysia. He says while a string of U.S. dry holes has been disappointing, he thinks development projects in the Gulf of Mexico and Ecuador should provide sufficient growth until the first oil is realized in Malaysia in 2007.