The firm also lowered its price target to $19 from $26 on shares of the Parsippany, NJ-based independent petroleum refiner.
Barclays expects most refiners to report lower-than-expected financial results for the third quarter. But PBF has the greatest potential to post a surprise downside to third quarter earnings, according to the firm.
The company will report third quarter earnings before the opening bell on October 28.
"But importantly, we forecast 2016 will mark the near-term low point for U.S. refining margins and expect earnings to recover over the next several years," the firm wrote in an analyst note.
Barclays also downgraded Western Refining (WNR) to "equal weight" from "overweight" today.
Separately, oil prices rallied today after Russia said it would support OPEC's efforts to curb production levels.
Recently, TheStreet Ratings objectively rated PBF stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated PBF stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and generally higher debt management risk.
You can view the full analysis from the report here: PBF