HF Sinclair stock rating upgraded to Strong Buy by Raymond James

Published 15/07/2025, 06:54
HF Sinclair stock rating upgraded to Strong Buy by Raymond James

Investing.com - Raymond (NSE:RYMD) James upgraded HF Sinclair (NYSE:DINO) from Market Perform to Strong Buy and set a price target of $54.00 for the $8.3 billion refining company. According to InvestingPro data, the stock currently trades at $44.22 and offers a 4.52% dividend yield.

The upgrade comes as Raymond James expects solid earnings performance from HF Sinclair in the second quarter of 2025, with potential momentum for the second half of 2025 and into 2026. This optimism is supported by InvestingPro data showing four analysts recently revising their earnings estimates upward for the upcoming period.

The firm cited improved refinery reliability as a key factor in its positive outlook, alongside solid business trends in the company’s midstream, lubes, and marketing segments.

Raymond James noted that HF Sinclair shares are currently trading at approximately 5.5 times their 2026 EBITDA estimate, compared to the large-cap average of roughly 6-8 times.

The investment firm now considers HF Sinclair its top small and mid-cap refining pick, describing the stock as representing a "compelling risk/reward" at current valuation levels.

In other recent news, HF Sinclair has been the focus of several analyst updates and strategic moves. Wolfe Research downgraded HF Sinclair from Peerperform to Underperform, citing concerns about potential volatility in free cash flow and tighter crude spreads affecting performance. Conversely, Morgan Stanley (NYSE:MS) maintained an Overweight rating, noting an expected increase in HF Sinclair’s refining index and projecting second-quarter earnings per share of $1.02, slightly above the consensus. Barclays (LON:BARC) also raised its price target for HF Sinclair to $43.00, citing an improved profitability outlook for refining, while acknowledging regulatory uncertainties in the Renewables segment. Piper Sandler reiterated an Overweight rating, highlighting the potential for upward revisions in earnings estimates and share buybacks. Additionally, HF Sinclair announced a dual listing on NYSE Texas, maintaining its primary listing on the New York Stock Exchange. This move underscores the company’s support for Texas’s growing capital markets infrastructure. These developments reflect a mix of analyst perspectives and strategic initiatives surrounding HF Sinclair.

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