Market Overview

UPDATE: Bank of America Upgrades HollyFrontier to Buy on Better Balance of Risk

Related HFC
Citigroup Picks Favorites In U.S. Refining & Marketing; Upgrades Marathon Petroleum And Hollyfrontier
Benzinga's Top Upgrades
Oil Refiners Tumble, Producers Rally on Export Ruling (Fox Business)

In a report published Thursday, Bank of America analyst Doug Leggate upgraded the rating on HollyFrontier Corp. (NYSE: HFC) from Neutral to Buy, and reiterated the $66.00 price target.

In the report, Leggate noted, “The recent pullback in the energy sector – and refining in particular - has taken HFC back to levels we believe are supported on the downside by a 7% implied dividend yield (including special) and a management team we believe is poised to buy back shares should weakness continue. WTI-Brent has moved from over $20 to near $10 in just the past few weeks; as a company that runs 100% WTI-based crudes, HFC has been the worst performer in our refining universe YTD. While acknowledging early risks to 2Q earnings estimates, we believe HFC is discounting long-term crude differentials substantially below $10. Upgrade to Buy from Neutral, to exploit a levered play on a potential rebound in spreads, once European refinery maintenance subsides adding a commensurate bid on Brent.”

HollyFrontier Corp. closed on Wednesday at $46.88.

Posted-In: Bank of AmericaAnalyst Color Upgrades Analyst Ratings

 

Most Popular

Related Articles (HFC)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free