PBF Energy Downgraded by Piper Sandler Amid Revenue Drop

In a recent report, Piper Sandler has downgraded PBF Energy from Neutral to Underweight, indicating potential challenges ahead as the company faces a projected revenue drop of 3.86% along with significant fund sentiment shifts.

Date: 22-09-2024

AI Rating: 4

PBF Energy has recently been downgraded by Piper Sandler from Neutral to Underweight, a significant signal for investors as it reflects analysts’ diminishing confidence in the company's future performance.

The report indicates that the projected annual revenue for PBF Energy is expected to be 35,815MM, which is a decrease of 3.86%. This decline in revenue can lead to lower profits and might negatively affect investor sentiment, potentially resulting in decreased stock prices.

Additionally, the average non-GAAP EPS is reported to be 7.46. A lower EPS could deter investors who might expect higher earnings, translating to further downward pressure on stock price.

Another key aspect highlighted is fund sentiment. There has been a reported decrease in the number of funds holding positions in PBF Energy, with a drop of 10 owner(s) or 1.17% in the last quarter. The total shares owned by institutions also decreased by 3.74% to 107,235K shares. This decline in institutional ownership can be a red flag for individual investors, signalling a potential lack of confidence in the company's future prospects.

In terms of expectations versus reality, the analyst price forecast suggests a 38.48% upside potential from the latest reported closing price of 33.47 GBX/share to an average price target of 46.36 GBX/share. While this may imply optimism about future price recovery, the current downgrade casts doubt on achieving these forecasts amidst declining revenue.

Stocks: PBF