Analyst Joe Laetsch of Morgan Stanley maintained a Sell rating on PBF Energy, retaining the price target of $27.00.
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Joe Laetsch has given his Sell rating due to a combination of factors impacting PBF Energy’s performance. The refining segment is facing challenges as benchmark cracks have increased, yet tight light/heavy crude differentials are expected to keep refining margin capture rates relatively flat. In particular, the West Coast region is experiencing headwinds due to planned maintenance, affecting realized margins until the Martinez refinery is fully operational.
Additionally, the Renewable Diesel segment is struggling with industry economics, leading to lower throughput and a projected earnings loss. Although there is a slight improvement in operating expenses, margins are expected to decline. In the Logistics segment, while EBITDA remains stable, the sale of terminal facilities and a reduced EBITDA run-rate suggest limited growth prospects. These factors collectively contribute to the Sell rating for PBF Energy.
According to TipRanks, Laetsch is a 2-star analyst with an average return of 0.7% and a 58.06% success rate. Laetsch covers the Energy sector, focusing on stocks such as Phillips 66, PBF Energy, and HF Sinclair Corporation.
In another report released on September 19, TD Cowen also maintained a Sell rating on the stock with a $22.00 price target.