Market Overview

UPDATE: Credit Suisse Initiates Coverage on Alon USA Energy with Neutral Rating, $17 PT

Related ALJ
5 Stocks Basking in the Glory of Recent Analyst Upgrades
Earnings Scheduled For May 8, 2017

In a report published Wednesday, Credit Suisse Group initiated coverage on Alon USA Energy (NYSE: ALJ) with a Neutral rating and $17.00 price target.

Credit Suisse noted, “We initiate on ALJ with a Neutral recommendation against a deeply undervalued peer group. Management is significantly improving the competitive positioning of the company (1) bringing cheap WTI-related crude to the light Krotz Springs refinery via pipe, (2) bringing Bakken crude to Bakersfield (if permits are granted) and (3) continued performance in ALJ's retail and asphalt marketing segments. Management has improved parent liquidity and has shone a spotlight on a key asset via the MLP formation with the Big Springs asset (ALDW). On our current assumptions, ALJ looks slightly undervalued ($17/sh target price), but less undervalued than c-corp peers. Our mid-cycle earnings estimates could prove conservative - we show inside potential upside towards $20/sh.”

Alon USA Energy closed on Monday at $15.14.

Latest Ratings for ALJ

Mar 2017Credit SuisseDowngradesNeutral
Nov 2016PiperJaffrayUpgradesUnderweightNeutral
Oct 2016Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for ALJ
View the Latest Analyst Ratings

Posted-In: Credit Suisse GroupAnalyst Color Initiation Analyst Ratings


Related Articles (ALJ)

View Comments and Join the Discussion!

Partner Center