HEP’s ratings update
Holly Energy Partners (HEP) is the midstream MLP formed by HollyFrontier (HFC) to provide refined products and crude oil transportation, terminaling, and storage services. HEP was downgraded by BofA/Merrill Lynch from “buy” to “underperform,” which is equivalent to a “sell.”
Following these rating changes, HEP had “hold” ratings from 71.0% of analysts, ”buy” ratings from 14.0%, and “sell” ratings from the remaining 14.0%.
HEP’s stock performance
HEP is currently trading at an analyst estimated forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 10.4x, which is slightly higher than the peer median multiple of 10.0x. HEP’s average target price of $37 implies a 7.1% price return from its current price of $34.50.