Goldman picks favorites in oil & gas, refiners

|By:, SA News Editor

Tweaking a list of favorite energy names alongside a fairly bullish outlook for the future of oil prices, Goldman notes potential "pockets of upside" among major oil & gas companies, and refiners.

Among the top picks: Marathon Petroleum (NYSE:MPC) for "underappreciated value across business lines, Valero Energy (NYSE:VLO) - a "free cash flow winner" and dividend growth potential, Husky Energy (OTCPK:HUSKF) on valuation, and Chevron (NYSE:CVX) thanks to free cash flow, dividend yield, and Permian Basin holdings.

Also making the top pick list is Suncor Energy (NYSE:SU) on hopes for strong growth for new projects, and valuation.

Upgraded to Neutral from Sell after recent underperformance is PBF Energy (NYSE:PBF). Downgraded to Sell from Neutral thanks to a pricey valuation is HollyFrontier (NYSE:HFC).

Previously: Goldman stays bullish on oil (April 5)