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Investing.com - Raymond (NSE:RYMD) James downgraded CVR Energy (NYSE:CVI) from Market Perform to Underperform on Tuesday. According to InvestingPro data, the stock is trading near its 52-week high of $32.67 and offers an impressive 11.3% dividend yield.
The downgrade reflects Raymond James’ view that the current solid margin backdrop for CVR Energy’s refining portfolio is already reflected in the company’s valuation.
Raymond James noted that CVR Energy currently holds the highest valuation in the SMID-cap sector and is trading near large-cap valuations.
The firm sees downside risk to the mid-to-high $20s range for the stock price.
Raymond James made this rating change despite acknowledging that CVR Energy’s refining portfolio can likely perform well in the current margin environment.
In other recent news, CVR Energy reported its Q1 2025 earnings, which exceeded analyst expectations. The company posted an earnings per share (EPS) of -$0.58, surpassing the forecasted -$0.85, while its revenue reached $1.65 billion, outperforming the projected $1.41 billion. The company noted a consolidated net loss of $105 million for the quarter, with the fertilizer segment showing resilience and the petroleum segment facing challenges. Additionally, CVR Energy announced amendments to its 2007 Long-Term Incentive Plan, which included increasing the number of shares reserved under the plan by 2.5 million and extending the plan’s term to 2035. The amendments were approved by shareholders during the annual stockholder meeting. Furthermore, eight directors were elected to the Board, and Grant Thornton LLP was ratified as the independent registered public accounting firm for the 2025 fiscal year. These developments reflect CVR Energy’s strategic focus on navigating market conditions and prioritizing debt reduction and balance sheet restoration.
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