JP Morgan Downgrades PBF Energy Outlook to Neutral

In a recent report, JP Morgan downgraded PBF Energy's outlook from Overweight to Neutral, suggesting caution among investors. Despite a projected average price increase of 27.07%, the company's projected revenue indicates a decline of 3.86%.

Date: 03-10-2024

AI Rating: 5

JP Morgan's downgrade of PBF Energy significantly impacts investor sentiment. Downgrading from Overweight to Neutral reflects concerns about the company's future performance. The projected average price target suggesting a 27.07% upside can indicate potential recovery; however, the projected annual revenue decrease of 3.86% casts doubt on this outlook.

The reported average EPS is 7.46, but without comparative data or benchmarks, it's challenging to assess whether this is satisfactory. The trend in institutional ownership is also concerning; there has been a decline in institutions reporting positions in PBF Energy, with total shares owned by institutions reducing by 3.47%.

Moreover, various significant funds reported decreased holdings during the last quarter, such as:

IJH - iShares Core S&P Mid-Cap ETF: Decreased by 3.16%;
Bank of New York Mellon: Decreased by 13.76%;
NAESX - Vanguard Small-Cap Index Fund: Decreased by 2.31%.

This trend of reduced allocations among institutions indicates a lack of confidence that could drive stock prices down. The combination of downgrading, projected revenue fall, and institutional sell-offs may pressure PBF Energy's stock negatively.

Stocks: PBF