Figma Shares Indicated To Open $105/$110
On Thursday, Mizuho (NYSE:MFG) Securities adjusted its outlook on HF Sinclair (NYSE: DINO), reducing the company’s price target from $45.00 to $40.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, seven analysts have recently revised their earnings estimates downward, supporting Mizuho’s cautious stance. The stock, currently trading at a P/E ratio of 36.5x, appears undervalued based on comprehensive Fair Value analysis. The adjustment comes as the firm anticipates HF Sinclair to fall short of first quarter expectations compared to the current consensus. Analysts at Mizuho predict significant underperformance in earnings before interest, taxes, depreciation, and amortization (EBITDA), free cash flow (FCF), and earnings per share (EPS), expecting misses of 35%, 21%, and 118%, respectively.
The anticipated shortfall is attributed primarily to the refining segment, despite seeing some sequential improvements. These include higher indicator margins and capture rates, as well as increased volumes due to the completion of turnaround work at the Tulsa facility, which contrasts with the previous quarter’s turnaround at El Dorado. While the company maintains strong financial health with a current ratio of 1.65 and has consistently paid dividends for 38 consecutive years, offering an attractive 5.95% yield, the recovery in capture rates post-El Dorado turnaround has not met expectations, leading to inflated consensus estimates.
Other business segments of HF Sinclair, such as Midstream, Lubricants, and Retail, are expected to have performed well. The exception is the Renewable Diesel segment, which has faced challenges similar to its industry peers. InvestingPro analysis reveals the company’s gross profit margin stands at just 5.45%, reflecting these operational challenges. This segment has been negatively impacted by decreased credit prices and regulatory uncertainty regarding prices, as well as reduced economic incentives on volumes. For deeper insights into HF Sinclair’s performance metrics and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The revised price target of $40 per share reflects a more cautious market outlook in the near term compared to previous expectations. Mizuho’s reiteration of a Neutral rating indicates a stance of watchful waiting as the market assesses HF Sinclair’s performance in a changing industry landscape.
In other recent news, HF Sinclair Corporation reported a net loss for the fourth quarter of 2024, significantly missing earnings expectations. The company posted an adjusted net loss of $191 million, translating to an earnings per share (EPS) of -$1.02, which fell short of the anticipated $0.01 EPS. Revenue for the quarter also lagged behind forecasts, coming in at $6.5 billion against an expected $6.77 billion. Despite these financial setbacks, HF Sinclair maintained a strong liquidity position with $3.3 billion at the end of 2024. Looking forward, the company plans to invest $775 million in sustaining capital and $100 million in growth projects for 2025. Additionally, HF Sinclair has entered into a three-year sponsorship agreement with the Utah Hockey Club, starting in 2025, marking its continued engagement in local sports and community initiatives. The company aims to expand its branded retail sites by 10% annually as part of its growth strategy. Meanwhile, HF Sinclair has been actively returning value to shareholders, distributing over $1 billion in 2024 through dividends and share buybacks.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.