Credit Suisse lowered shares of Northern Tier Energy (NYSE:NTi) from an outperform rating to a neutral rating in a report released on Wednesday, TheFlyOnTheWall.com reports. Credit Suisse currently has $28.00 price objective on the stock.
“In January’s Great LLS Debate we felt refiner profitability would decline in 2013 due to narrowing WTI-Brent and that it would take some time for stress in Gulf coastal crude markets to widen WTI-Brent back out. In early April we said “Take Some Profits, Downgrading PBF”. To avoid WTI-Brent we’ve been hiding out in coastal names with catalysts (e.g. MPC) and arguing logistic value would provide some support. After a VLO call, where management continued to position RINs as a large 2014 hurdle and seemed less optimistic about Gulf Coast crude discounts until 2015, we cut our EBITDA estimates to more closely reflect this reality. EBITDA falls 9% for 2013, 21% for 2014. Investors are likely already using lower EPS than the sell-side. Being 20% below 1Q consensus back in April, 20% below Q2 consensus back in March and, after today’s cuts, 20% below 3Q EBITDA consensus holds no prizes. RINs add another level of significant uncertainty for certain names unless legislation changes. There is value in select names (MPC, PSX, DK, WNR) but a need for some valuation or EPS caution in others (PBF, ALJ, VLO, the variable rate refiner MLPs) given limited valuation support and RINs risk (until legislation changes). We downgrade both ALDW and NTI to Neutral from Outperform.,” Credit Suisse’s analyst wrote.
Credit Suisse has also modified their ratings on a number of other stocks in the few days. The firm raised its price target on shares of Facebook from $31.00 to $36.00. They have a neutral rating on that stock. Also, Credit Suisse raised its price target on shares of Mellanox Technologies, Ltd. from $40.00 to $45.00. Finally, Credit Suisse raised its price target on shares of Electronic Arts from $22.00 to $25.00. They have a neutral rating on that stock.
Separately, analysts at Citigroup Inc. initiated coverage on shares of Northern Tier Energy in a research note to investors on Wednesday, June 5th. They set a buy rating on the stock.
Five analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Northern Tier Energy has a consensus rating of Buy and an average target price of $28.17.
Shares of Northern Tier Energy (NYSE: NTI) traded up 2.32% during mid-day trading on Wednesday, hitting $25.19. Northern Tier Energy has a 52 week low of $14.10 and a 52 week high of $33.24. The stock’s 50-day moving average is currently $24.52. The company has a market cap of $2.316 billion and a P/E ratio of 5.15.
Northern Tier Energy LP, formerly Northern Tier Energy, Inc, is an independent downstream energy company with refining, retail, and pipeline operations that serves the PADD II region of the United States.
