HollyFrontier: Most Analysts Say ‘Hold’ ahead of Q4 Earnings



HFC’s pre-earnings analyst ratings

In this series, we’ve examined HollyFrontier Corp.’s (HFC) 4Q15 estimates, refining margin trend, stock performance, recent moves, and refining throughput ahead of its earnings release on February 24. In this part, we’ll take a look at ratings from analysts covering the stock.

The above table shows that four of ten firms have rated HFC a “buy,” “overweight,” or “outperform.” The highest 12-month price target for HFC stands at $60, indicating a whopping 94% gain from the current levels. The remaining six firms have rated HFC a “hold.” The average 12-month price target for HFC stands at $48, indicating a 56% gain from the current levels. None of the above firms have given a “sell” rating to HollyFrontier. In fact, HFC’s lowest 12-month price target stands at $33, implying a 7% gain from the current levels.

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The highest price target for HFC is set by Credit Suisse, whereas the lowest price target comes from Tudor Pickering, Holt, & Co. Barclays, Wolfe Research, and RBC Capital Markets have positive recommendations for the stock and have given price targets equal to or above $55 per share. On the other hand, Goldman Sachs, J.P. Morgan, and Simmons and Company International have given “neutral” recommendations on the stock.

HFC’s Peers Analyst Ratings

HollyFrontier Corp.’s (HFC) peers PBF Energy (PBF), Delek US Holdings (DK), and Alon USA Energy (ALJ) have been rated as “buys” by 69%, 73%, and 9% 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). The ETF has ~9% exposure to refining and marketing stocks.


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