These are top 10 stocks traded on the Robinhood UK platform in July
On Thursday, Par Pacific Holdings (NYSE:PARR) received an upgraded stock rating from Goldman Sachs, moving from Neutral to Buy, accompanied by a price target increase to $19.00, up from the previous $18.00. The upgrade suggests a 34% potential upside for the company’s shares, which currently trade at $14.23. According to InvestingPro data, the stock has experienced significant volatility, trading between $11.86 and $40.20 over the past 52 weeks.
Goldman Sachs’ analyst cited several reasons for the optimistic outlook on Par Pacific. The firm sees a favorable risk/reward scenario at the current stock levels, despite acknowledging the prevailing macroeconomic uncertainties and challenging demand dynamics in Asia. Moreover, the expectation is that Singapore margins may have reached their lowest point and could be set for a rebound. InvestingPro analysis reveals the company operates with a gross profit margin of 10.95%, indicating room for improvement. Get access to 10+ additional exclusive ProTips and comprehensive valuation metrics with InvestingPro’s detailed research report.
The analyst specifically pointed to Par Pacific’s Hawaii refining segment, which is anticipated to benefit from improving margins. The positive sentiment extends to the company’s Logistics and Retail operations, which are recognized for their more stable earnings contributions. While the company’s liquid assets currently exceed short-term obligations, InvestingPro data indicates it operates with a significant debt burden.
The price target adjustment reflects Goldman Sachs’ confidence in Par Pacific’s potential for growth and its ability to navigate through current market challenges. The upgrade and new price target indicate a belief in the strength and resilience of the company’s diverse business segments.
Investors in Par Pacific will be monitoring the company’s performance closely to see if it aligns with Goldman Sachs’ expectations. The stock market’s response to this upgrade may also serve as an indicator of broader investor sentiment towards the company’s future prospects.
In other recent news, Par Pacific Holdings Inc. reported mixed results for the fourth quarter of 2024. The company announced an adjusted loss of $0.79 per share, which was greater than the anticipated loss of $0.45 per share. However, revenue exceeded expectations, coming in at $1.83 billion compared to the forecast of $1.76 billion. Within its segments, Par Pacific’s logistics division achieved a record EBITDA of $33 million, while the refining division experienced a loss of $22 million. The retail segment performed positively, contributing $22 million in EBITDA. Analysts from TPH and JPMorgan have shown interest in the company’s strategic initiatives, particularly the sustainable aviation fuel project in Hawaii. Par Pacific is also focusing on cost reduction efforts, targeting $30-40 million in savings for the upcoming year. Despite the earnings miss, the company is advancing several strategic projects, including a sustainable aviation fuel initiative, to strengthen its future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.