CVR Energy stock price target raised to $30 from $25 at Mizuho

Investing.com - Mizuho (NYSE:MFG) raised its price target on CVR Energy (NYSE:CVI) to $30.00 from $25.00 on Tuesday, while maintaining a Neutral rating on the stock. The company, currently trading near its 52-week high of $32.67 and showing a remarkable 65.31% YTD return, appears overvalued according to InvestingPro analysis.

The price target increase comes despite Mizuho’s expectation that CVR Energy will miss second-quarter consensus estimates for both EBITDA and earnings per share.

Mizuho forecasts Q2 2025 EBITDA of $101 million and EPS of $(0.12), compared to consensus estimates of $114 million and $(0.06), respectively.

The firm attributes the anticipated miss to assumptions in refining, where it believes consensus estimates are "more optimistic about margin capture," along with slightly lower-than-consensus estimates for the company’s Fertilizers and Renewable Diesel segments.

Mizuho’s new price target reflects adjusted assumptions for margin capture in Refining "given the recent strength," though the firm maintained its Neutral stance "given the current stock price level."

In other recent news, CVR Energy reported its Q1 2025 earnings, which exceeded expectations. The company posted an earnings per share (EPS) of -$0.58, surpassing the forecasted -$0.85, and achieved revenue of $1.65 billion, outpacing the anticipated $1.41 billion. Additionally, CVR Energy’s shareholders approved amendments to its Long-Term Incentive Plan, increasing the number of shares reserved under the plan by 2.5 million and extending the plan’s term to April 21, 2035. Meanwhile, Raymond (NSE:RYMD) James downgraded CVR Energy’s stock rating from Market Perform to Underperform, citing concerns over the company’s valuation. Despite the downgrade, the company is focusing on debt reduction and considering a potential dividend reinstatement. The petroleum segment faced challenges, while the fertilizer segment showed resilience with an adjusted EBITDA of $53 million. The renewable segment also contributed positively with an adjusted EBITDA of $3 million. CVR Energy is prioritizing debt reduction and balance sheet restoration, with no additional refinery turnarounds planned through 2026.

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