Bank Of America Says A Strategic Pause Is Necessary For The US Refiners - Here's Why
Portfolio Pulse from Shivani Kumaresan
Bank of America Securities analyst Doug Leggate has recommended a strategic pause for US refiners due to a combination of capacity offshoring and a sustainable cost advantage of US natural gas. He sees risks that margins are peaking and seasonal trends could pressure margins in the coming months. He views Phillips 66, Marathon Petroleum Corp, and Valero Energy Corp as defensive plays, with PBF Energy Inc most leveraged to ongoing changes. He has lowered all Buy-rated refiners to Neutral.
August 15, 2023 | 4:36 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
HF Sinclair Corp's rating has been lowered from Buy to Neutral.
The analyst's recommendation of a strategic pause and lowering of ratings from Buy to Neutral indicates a potential short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Marathon Petroleum Corp is seen as a defensive play in the refining sector. Its rating has been lowered from Buy to Neutral.
The analyst's recommendation of a strategic pause and lowering of ratings from Buy to Neutral indicates a potential short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
PBF Energy Inc is most leveraged to ongoing changes in the refining sector. Its rating has been lowered from Buy to Neutral.
The analyst's recommendation of a strategic pause and lowering of ratings from Buy to Neutral indicates a potential short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Phillips 66 is seen as a defensive play in the refining sector. Its rating has been lowered from Buy to Neutral.
The analyst's recommendation of a strategic pause and lowering of ratings from Buy to Neutral indicates a potential short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Valero Energy Corp is seen as a defensive play in the refining sector. Its rating has been lowered from Buy to Neutral.
The analyst's recommendation of a strategic pause and lowering of ratings from Buy to Neutral indicates a potential short-term negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Delek US Holdings Inc maintains a Neutral rating.
The analyst's maintenance of a Neutral rating for Delek US Holdings Inc indicates a neutral short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 100