UPDATE: Goldman Sachs Initiates Alon USA Energy at Buy on Asset Valuation Outlook

Goldman Sachs initiated coverage on Alon USA Energy 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.