Market Overview

Citigroup Reiterates Buy Rating, $67.50 PT on Hess Corp.

Related HES
Market Wrap For April 23: S&P 500 Ends Winning Streak, Apple Announces 7-for-1 Stock Split
Buckeye Partners Touches 52-Week High - Analyst Blog

In a report published Monday, Citigroup reiterated its Buy rating and $67.50 price target on Hess Corp. (NYSE: HES).

Citigroup noted, “Hess announced it is closing its Port Reading refinery in New Jersey and selling its terminal network. Approximately $1.0 billion of working capital will be released from the sale of the terminals. We estimate the terminal assets could be valued at $1.0 billion (excluding working capital). Hess did not disclose the tax basis in these assets; however, the company is not a significant taxpayer in the US and has accumulated a large enough NOL from all its drilling activity in the US to offset any taxable gains. We had valued the Port Reading asset and related assets at $260mm. The announcement today has the potential to add over $1.7bn in value above and beyond out NAV or $5 per share.”

Hess Corp. closed on Friday at $62.41.

Posted-In: CitigroupAnalyst Color Reiteration Analyst Ratings

 

Most Popular

Related Articles (HES)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free