HollyFrontier -1.7% after Credit Suisse downgrade

HollyFrontier (HFC -1.7%) is downgraded to Neutral from Outperform with a $50 price target, down from $63, at Credit Suisse, which predicts the macro economy to negatively affect HFC's operational recovery.

The firm views global refiners as over-capacitated fears, and expects Middle East uncertainty to decrease the price of imports in H2 2014; due to recent crude oil spikes, it is concerned about the company's Q4 results.

Credit Suisse has cut HFC's Q2 EPS outlook by 18% and Q3 by 16%.

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Comments (8)
  • snoopy44
    , contributor
    Comments (1492) | Send Message
    This downgrade makes absolutely no sense whatsoever. It seems to me the larger refiners nearer the gulf coast like VLO would have more exposure to this than a mid-cap mid-continental refiner. Why single out HFC? And where in the world did an 18% and 16% cut number come from? I suspect it came from the seat of their pants. Looks like a buying opportunity to me.
    27 Jun 2014, 12:03 PM Reply Like
  • Maobama
    , contributor
    Comments (513) | Send Message
    Snoopy: I agree with you. It's an absurd downgrade.
    27 Jun 2014, 12:28 PM Reply Like
  • RogerMexico
    , contributor
    Comments (23) | Send Message
    Send Credit Suisse my regards for this excellent double whammy entry point.
    27 Jun 2014, 12:10 PM Reply Like
  • petethebeet
    , contributor
    Comments (837) | Send Message
    It may drop some more before it's over, but I'm holding and reinvesting dividends.
    27 Jun 2014, 12:12 PM Reply Like
  • Ruffdog
    , contributor
    Comments (3681) | Send Message
    So am I, just got me dividend credited to my account, we will see tonight how many shares Schwab converts it in.
    30 Jun 2014, 08:27 AM Reply Like
  • jdadyfinance
    , contributor
    Comments (238) | Send Message
    The street consistently undervalues HFC and it's competative advantage due to access to Bakken and Canadian crude both of which are discounted due to oversupply in the mid continent. Definitely a buying opportunity and the div yield offers some additional downside cushion. This is headline driven nonsense about US exporting crude which ain't never gonna happen.
    27 Jun 2014, 01:14 PM Reply Like
  • Ray44
    , contributor
    Comments (91) | Send Message
    agreed jdady. Best positioned for mid-continent and is shareholder friendly. Analyst calls show they are very smart too.
    27 Jun 2014, 01:33 PM Reply Like
  • Anne Bonney
    , contributor
    Comments (105) | Send Message
    Talking heads, no foundation. Agree with every poster above.


    Every body who thinks that the price of oil is going down, raise your hands....


    Back up the truck yet again, and continue to cry all the way to the bank.
    27 Jun 2014, 05:06 PM Reply Like
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