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Par Pacific Holdings: Strategic Buyback and Market Conditions Justify Buy Rating

Par Pacific Holdings (PARRResearch Report), the Energy sector company, was revisited by a Wall Street analyst today. Analyst Jason Gabelman from TD Cowen maintained a Buy rating on the stock and has a $20.00 price target.

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Jason Gabelman has given his Buy rating due to a combination of factors including Par Pacific Holdings’ strategic financial maneuvers and favorable market conditions. The company has demonstrated confidence in its financial standing by repurchasing 5% of its shares, which is the second-largest buyback in its history. This move reflects a strong liquidity position, with cash reserves significantly above their comfort levels.
Additionally, Par Pacific Holdings is expected to benefit from industry outages and declining oil prices, which have bolstered regional margins. The company’s proactive approach to managing maintenance impacts by selling inventory further supports its positive earnings outlook. These elements, combined with a raised price target to $20, suggest that Par Pacific Holdings is positioned for improved performance in the coming years, justifying the Buy rating.

In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $21.00 price target.

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