PBF - Wells sees sustained high refining margins bumps price targets upgrades PBF

Wells Fargo analyst Roger Reid was early on calling for improved refining fundamentals in 2022, and is not backing off the call; Thursday he upgraded PBF (PBF) to hold and lifted price targets across the sector. Favorable payroll data, post-pandemic demand recovery and constrained supply will sustain "better than mid cycle" refining margins throughout the year, and valuations don't yet reflect the industry's improved fundamentals, wrote Read. Earlier Thursday, RBC upgraded Exxon (XOM) to buy, citing improved refining results in coming quarters. Read bumped price targets across the board, with Marathon's (MPC) target lifted 21%, Delek's (DK) 26%, and PBF's (PBF) price target lifted a full 50% Thursday; with oil trading sideways of late, improved downstream results could be the focus of Q2 outlooks in coming weeks.

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Wells sees sustained high refining margins, bumps price targets, upgrades PBF