UPDATE: Goldman Sachs Upgrades PBF Energy (PBF) to Neutral Following Sharp Decline in Valuation

(Updated - March 26, 2020 5:34 AM EDT)

(updating comment)

Goldman Sachs analyst Neil Mehta upgraded PBF Energy (NYSE: PBF) from Sell to Neutral with a price target of $7.00 (from $9.00).

The analyst comments "Since downgrading shares on February 18, 2020, the stock is down 76%, underperforming refining peers by 23% and the S&P by 49%. At the core of our downgrade, was a view that valuation did not reflect risk around the balance sheet post-M&A and lower levels of free cash flow driving limited capital return/dividend growth potential. While we are still concerned about a dividend cut, we believe this is reflected in the current share price. In addition, when investors turn the page on 2020 and start looking towards 2021, PBF after the recent underperformance, now trades at the lowest multiple on a P/E and EV/EBITDA basis in our coverage."

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

Shares of PBF Energy closed at $6.63 yesterday.

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