How Analysts’ Ratings Have Changed for Downstream Companies

How Is Wall Street Currently Rating Energy Companies?

(Continued from Prior Part)

Recent upgrades and downgrades

In this part, we’ll study analysts’ most recent ratings changes for the five largest downstream companies by enterprise value.

Recently, there were no upgrades issued by Wall Street analysts for the top five downstream companies.

Phillips 66 (PSX) was downgraded to a “hold” from an “overweight” by EVA Dimensions on February 23, 2016. EVA Dimensions did not mention a target price for PSX.

Recent recommendations

For Valero Energy (VLO), the most recent recommendation of “outperform” comes from Macquarie. It was issued on March 1, 2016. Macquarie assigned VLO the target price of $72, ~17% higher than its March 1 closing price of $61.59.

For Marathon Petroleum (MPC), the most recent recommendation of “overweight” comes from EVA Dimensions. It was issued on March 1. EVA Dimensions didn’t mention any target price for MPC.

For Tesoro (TSO), the most recent recommendation of “outperform” comes from Macquarie. It was issued on March 1. Macquarie assigned TSO the target price of $110, ~32% higher than its March 1 closing price of $83.62.

For HollyFrontier (HFC), the most recent recommendation of “buy” comes from EVA Dimensions. It was issued on March 1. EVA Dimensions didn’t mention any target price for HFC.

All of the above price targets are for a 12-month period from the date of recommendation.

In the next part, we’ll delve further into the recommendations for each of these companies.

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