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How Did Analysts Rate HFC following Its 4Q15 Earnings?

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Analysts’ recommendations

In this series, we’ve examined HollyFrontier’s (HFC) 4Q15 earnings, segmental analysis, stock performance, and capital expenditure position. In this part, we’ll examine the ratings of analysts covering the stock.

The above table shows that three of the 11 analysts surveyed have rated HFC as “buy,” “overweight,” or “outperform.”

The highest 12-month price target for HFC stands at $58, indicating a whopping 71% rise from its current levels. The remaining eight analysts have rated HFC as a “hold.” The average 12-month price target for HFC stands at $45, indicating a 34% rise from its current levels.

None of the above companies have given “sell” recommendations to HollyFrontier. In fact, HFC’s lowest 12-month price target stands at $37, implying a 9% rise from its current levels.

The highest price target for HFC has been set by Barclays, whereas the lowest price target has been set by JPMorgan Chase. Companies Scotia Howard Weil, Cowen, and RBC Capital Markets have given price targets equal to or above $45 per share for HFC.

On the other hand, companies Goldman Sachs, Wells Fargo Securities, and Simmons & Company International have given “neutral” or “market perform” recommendations to the stock.

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HFC’s peers’ analyst ratings

HollyFrontier’s peers Marathon Petroleum (MPC), Valero Energy (VLO), and Phillips 66 (PSX) have been rated as “buys” by 83%, 80%, and 44% of analysts surveyed, respectively.

If you’re looking for exposure to refining sector stocks, you can consider the iShares North American Natural Resources ETF (IGE). IGE has ~9% exposure to refining and marketing sector stocks.

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