Deutsche Bank Starts HollyFrontier (HFC) at Buy; Diamonds are a Refiner's Best Friend

Deutsche Bank initiates coverage on HollyFrontier (NYSE: HFC) with a Buy. PT $95.

Deutsche analyst said, "We begin coverage of HollyFrontier, now merged, ticker HFC. We rate it BUY as a key play on our bull case on MidCon (& Rockies) refining strength - see our Oct 2010 note "Diamond Age of US Refining". With net cash on the balance sheet, high FCF, at least $30m cost savings from the merger that should preclude further acquisitions for 1+ years, we believe HFC will likely return cash to shareholders through a special dividend. We want refiners with low costs, high FCF, capex below DD&A, & high cash return to shareholders. HFC is the best offering of this."

For more ratings news on HollyFrontier click here and for the rating history of HollyFrontier click here.

Shares of HollyFrontier closed at $25.09 yesterday.

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