Citi Upgrades CVR Energy (CVI) to Buy
- S&P 500, Dow climb for third day and close at records
- Tesla (TSLA) China Numbers 'Robust' - Wedbush
- Apple (AAPL) Shares Seen as 'Attractive' as Recent Checks Show Continuously Strong Demand - Citi
- Investors Poured More Money Into Stocks in Past 5 Months Than Last 12 Years, Says BofA, Analysts Worried About Stretched Valuations
- Amazon.com warehouse workers vote to reject forming union in Alabama
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Citi analyst Prashant Rao upgraded CVR Energy (NYSE: CVI) from Neutral to Buy with a price target of $31.00 (from $16.00).
The analyst comments "We think the broader market is missing the valuation uplift CVI’s move into renewable diesel presents. The first phase of its Wynnewood project – targeted for a mid-year start-up – is like a low-cost option play to capitalize on a favorable biomass market, adding $10/sh to CVI’s $21/sh as-is intrinsic value with very limited downside risk. Our calculations suggest a short payback period of 18 months, IRR of 48%, and base case NPV of ~$550mm. The downside risk is highly mitigated as approx. 60% of the $110mm development capex is associated with logistics assets that have high salvage values."
Shares of CVR Energy closed at $22.90 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- EQT AB (EQT:SS) PT Lowered to SEK245 at Goldman Sachs
- Xero Limited (XRO:AU) (XROLF) PT Lowered to AUD153 at Goldman Sachs
- Yaskawa Electric (6506:JP) (YASKY) PT Raised to JPY7,000 at Goldman Sachs
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!