UPDATE: Goldman Sachs Initiates CVR Refining at Neutral on Less Upside to Relative Buy-Rated Refiners

In a report published Sunday, Goldman Sachs analyst Arjun N. Murti initiated coverage on CVR Refining CVRR with a Neutral rating and a $37 price target.

In the report, Goldman Sachs cited that, “CVRR enjoys pure-play exposure to our bullish MidCon refining outlook and specifically expected MidCon crude oil discounts. CVRR is well aligned with our preference for companies that return excess cash to investors. As an MLP, it is structured to distribute virtually all of its excess cash flow to unit holders…. Key risks include refining margin and interest rate volatility (both of which represent upside and downside risks), M&A activity (upside and downside), unplanned downtime, and unfavorable tax law changes.”

CVR Refining closed Friday at $30.48.