PBF Energy downgraded at Scotia Howard Weil

|About: PBF Energy (PBF)|By:, SA News Editor

PBF Energy (PBF -4.1%) is downgraded to Sector Outperform from Focus Stock with a $24 price target, trimmed from $29, at Scotia Howard Weil, as independent refiners such as PBF are expected to report another quarter of disappointing earnings in the coming weeks.

Scotia says even after closing on the deal for the Torrance refinery, ongoing operational hiccups on PBF's watch even after Exxon struggled to make repairs likely will distort Q3 and Q4 performance; also, the Chalmette facility has yet to deliver on investor expectations.

The firm believes it will take time for PBF to show the true underlying capability of the assets, and until then, shares likely will lag as investors will be reluctant to assign much confidence in earnings or EBITDA forecasts.