UPDATE: Goldman Sachs Initiates Alon USA Energy at Buy on Asset Valuation Outlook
Goldman Sachs initiated coverage on Alon USA Energy (NYSE: ALJ) with a Buy rating and a $21 price target.
Goldman Sachs said, "ALJ is a geographically diversified refining company, though its Big Spring refinery (near Midland, Texas) accounts for the bulk of its expected valuation and benefits from Brent-WTI (Cushing) and WTI-Midland versus WTI-Cushing crude oil spreads. We believe the recent IPO of Alon USA Partners, a variable distribution MLP that houses ALJ's ownership interest in the Big Spring refinery, will help investors recognize the inherent value of the asset."
Alon USA Energy closed at $15.40 on Friday.
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Tags: Goldman Sachs