Sector Snap: Oil Refiners' Shares Rise On Upgrade
DENVER (AP) â¿¿ Shares of several independent oil refiners were mixed Monday after an analyst raised her rating on the sector but noted that the industry faces challenges for at least another year.
Caris & Co. analyst Ann Kohler raised her rating to "3(asterisk)/Average" from "4(asterisk)/Average" on Alon USA Energy Inc., Frontier Oil Corp., Holly Corp., Sunoco Inc., Tesoro Corp. and Valero Energy Corp.
Kohler expects refiners' earnings to start improving in the second quarter, now that demand for refined product has stabilized and crude differentials have improved, she said in a research note. The above-average hurricane season forecast for the Atlantic Basin also should benefit the industry.
But there were caveats."Despite our upgrade, the industry will continue to face meaningful headwinds over the next 12 to 18 months, thanks to the combination of industry overcapacity..., increased ethanol blending, rising fuel efficiency standards and persistent higher unemployment," she said. In early trading, Holly rose 4 cents to $25.94; Tesoro added 3 cents to $11.73; and Sunoco fell 9 cents to $27.98. Shares of Alon fell 2 cents to $6.73; Frontier fell 1 cent to $13.90 and Valero Energy fell 34 cents to $18.35.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV