HF Sinclair stock rating downgraded to Neutral by Piper Sandler

Investing.com - Piper Sandler downgraded HF Sinclair (NYSE:DINO) from Overweight to Neutral and lowered its price target to $51.00 from $53.00. The stock, currently trading at $44.40, has shown strong momentum with a 29% gain over the past six months, according to InvestingPro data.

The research firm cited several factors for the downgrade, including the company’s current valuation and its exposure to gasoline markets.

Piper Sandler also pointed to HF Sinclair’s limited near-term share buyback activity as a contributing factor in its decision to lower the stock rating.

The firm noted a shift in preference back toward Gulf Coast refiners for the third quarter, which influenced its more cautious stance on HF Sinclair.

Despite the downgrade, Piper Sandler acknowledged that HF Sinclair remains well-positioned among small and mid-cap refiners in terms of portfolio quality, geographic footprint, and free cash flow generation. The company maintains strong liquidity with a current ratio of 1.87 and offers a 4.5% dividend yield, while generating $27.92 billion in revenue over the last twelve months.

In other recent news, HF Sinclair has seen a series of analyst updates and projections. Piper Sandler raised its price target for HF Sinclair to $53, maintaining an Overweight rating, and adjusted its second-quarter 2025 earnings estimates to $1.22 per share. Mizuho (NYSE:MFG) also increased its price target to $50, citing better near-term refining capture rates and projecting that HF Sinclair will exceed current consensus estimates for EBITDA, free cash flow, and EPS. Raymond (NSE:RYMD) James upgraded the stock to Strong Buy, setting a price target of $54, due to expected solid earnings performance and improved refinery reliability. Conversely, Wolfe Research downgraded HF Sinclair to Underperform with a price target of $42, expressing concerns about seasonal volatility and tighter crude spreads. Morgan Stanley (NYSE:MS) reiterated an Overweight rating with a $44 price target, expecting a 45% rise in the refining index compared to the first quarter. The firm also noted modestly softer Midstream & Marketing earnings and challenges in the Renewables segment. These developments provide investors with varied perspectives on HF Sinclair’s financial outlook.

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