Gold prices just lower; monthly gains on track
Investing.com - UBS has reiterated its Buy rating and $26.00 price target on PBF Energy (NYSE:PBF) as the company’s land is slated for major data center development. The stock, currently trading at $27.35, has shown strong momentum with a 17.5% gain over the past week.
Analyst firm UBS maintained its positive outlook on PBF Energy following news that Starwood Digital Ventures has filed applications to develop a massive data center campus on land tied to the energy company. According to InvestingPro data, PBF Energy, with a market cap of $3.18 billion, is currently trading below its Fair Value, suggesting potential upside opportunity. Get access to detailed valuation analysis and 12+ additional ProTips with InvestingPro.
The proposed development, known as Project Washington, would create a 1.2GW campus spanning 6 million square feet across 11 buildings, according to reporting by BizJournal.
The project would be developed on approximately 580 acres of vacant land between the Dupont Highway, Governor Lea Road, and River Road in New Castle, Delaware, a location about seven miles south of Wilmington and 35 miles southwest of Philadelphia.
Starwood Digital Ventures, a subsidiary of Starwood Capital Group, is proposing the project in partnership with New Castle Campus Development LLC, an entity connected to PBF Energy.
In other recent news, PBF Energy reported several significant developments. UBS upgraded PBF Energy’s stock rating from ’Neutral’ to ’Buy’ and raised the price target to $26.00, citing improvements in refining fundamentals and a rebound in refining cracks. On the earnings front, PBF Energy is anticipating $250 million in insurance proceeds and plans to liquidate 2 million barrels of inventory during the second quarter of 2025, which is expected to enhance cash flow. However, Mizuho (NYSE:MFG) maintained its Underperform rating, projecting that PBF Energy will miss second-quarter 2025 earnings estimates, with a predicted 50% miss in EBITDA and a 21% miss in EPS.
Moody’s downgraded PBF Energy’s Corporate Family Rating to Ba3, citing increased debt from negative free cash flow and heightened financial leverage risks. The company’s liquidity remains adequate, with $443 million in cash and a $3.5 billion revolving credit facility. Additionally, PBF Energy’s shareholders elected the Board of Directors and approved KPMG LLP as the independent auditor for 2025. The company’s executive compensation plan and the 2025 Equity Incentive Plan also received shareholder approval. These developments collectively offer insight into PBF Energy’s financial and operational landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.