Cowen Downgrades Valero Energy (VLO), HollyFrontier (HFC), Delek US (DK) to Hold

Cowen downgraded refiners Valero Energy (NYSE: VLO), HollyFrontier Corporation (NYSE: HFC) and Delek US Holdings, Inc. (NYSE: DK) from Buy to Hold saying the single largest risk to equity performance, global product demand, has emerged as a headwind.

Analyst Sam Margolin comments, "Over the past several weeks, key global product markets, including the US, Europe, and China, have displayed deteriorating apparent demand trends and indicators, expressed by substantial underperformance of Brent prices as well as crack spread compression. Domestic gasoline inventories could normalize in the near term, with improved weather and utilization impacts from Midwest flooding; however, the underlying supply/demand balance for the coming year appears at risk. In conjunction with growth in global capacity, including the Motiva Port Arthur expansion to start the year, the refinery-level bottleneck within energy markets has transitioned to looseness at both ends."

For an analyst ratings summary and ratings history on Valero Energy click here. For more ratings news on Valero Energy click here.

Shares of Valero Energy closed at $36.98 yesterday.

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