Sell Rating on PBF Energy Due to Operational Risks and Unfavorable Market Conditions

Bank of America Securities analyst Jean Ann Salisbury reiterated a Sell rating on PBF Energy (PBF – Research Report) yesterday and set a price target of $14.00.

Jean Ann Salisbury’s rating is based on several concerns regarding PBF Energy’s operational challenges and market conditions. Despite some positive updates on insurance and cash flow, the company faces significant operational risks, particularly in its PADD5 region. The Martinez refinery, which recently experienced a fire-related outage, is undergoing repairs and additional maintenance, which could lead to further downtime and impact reliability.
Furthermore, the regional gasoline market dynamics are not favorable for PBF. The cost of imports has increased, driving up regional price differentials, and there is a risk that demand could decline due to external factors such as tariffs. These challenges, combined with a lower price objective of $14 compared to the current price of $17.18, contribute to the Sell rating as the risks outweigh potential benefits.

In another report released yesterday, TD Cowen also maintained a Sell rating on the stock with a $12.00 price target.

Based on the recent corporate insider activity of 114 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PBF in relation to earlier this year.