Barclays Reiterates an 'Underweight' on Alon USA Energy (ALJ); 46% 1 day Gain Excessive

Barclays reiterates an 'Underweight' on Alon USA Energy (NYSE: ALJ) price target of $10.00.

Barclays analyst says, "ALJ spiked up nearly 50% on Friday (11/4) after it printed 3Q11 results on Thursday night while the S&P 500 declined by 0.6%. Did the 3Q11 result really justify such a dramatic move? We don't think so and recommend to take profits here. We reiterate our UW and think Tesoro (NYSE: TSO), Valero (NYSE: VLO), and Marathon Petroleum (NYSE: MPC) offer better risk/reward among the refiners. We think there may be three reasons behind Friday's movement: 1) A short squeeze, 2) Net debt reduction, and 3) Announcement by management that Krotz Springs will begin to process WTI crude in December (initially at 10 mb/d and hopefully ramping to 25 mb/d by 3Q12)."

For more ratings news on Alon USA Energy click here and for the rating history of Alon USA Energy click here.

Shares of Alon USA Energy closed at $11.44 yesterday.

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