PBF Energy stock plunges to 52-week low at $22.02

Published 26/02/2025, 18:00
PBF Energy stock plunges to 52-week low at $22.02

In a challenging year for energy companies, PBF Energy Inc. (NYSE:PBF) stock has tumbled to a 52-week low, reaching a price level of $22.02. With a market capitalization of $2.57 billion and annual revenue of $33.1 billion, the company offers a notable dividend yield of 4.81%. The significant downturn reflects a broader trend in the sector, with PBF Energy experiencing a stark 1-year change, plummeting by -54.05%. This decline has alarmed investors and analysts alike, as the company grapples with market volatility and industry-specific headwinds. According to InvestingPro analysis, the stock appears undervalued at current levels, though challenges persist with negative EBITDA and earnings forecasts. The 52-week low serves as a critical indicator of the company’s recent performance and the bearish sentiment that has taken hold among shareholders. InvestingPro subscribers have access to 12 additional key insights about PBF Energy, including detailed analysis of its financial health and future prospects.

In other recent news, PBF Energy has reported a challenging fourth quarter of 2024, with earnings per share of -$2.82, missing the forecast of -$1.97. The company’s revenue also fell short, coming in at $7.35 billion against a forecast of $7.76 billion. These results were influenced by operational disruptions, including a fire at the Martinez refinery, which led to a complete shutdown of operations at the facility. This refinery accounts for 15% of the company’s total capacity, and analysts at TD Cowen have noted that the shutdown could create a financial headwind of approximately $100 million if it persists through the first quarter.

In response to these developments, JPMorgan adjusted its price target for PBF Energy shares to $31 from $35, maintaining a Neutral rating, while TD Cowen lowered its price target to $19 from $20, reaffirming a Sell rating. The analysts highlighted concerns over PBF Energy’s financial outlook, particularly regarding the Martinez refinery’s shutdown and the potential increase in leverage through 2025. PBF Energy is focusing on cost savings and operational efficiency, aiming to achieve $200 million in run-rate cost savings by the end of 2025 through its Refining Business Improvement Program.

The company plans to finalize and share a detailed improvement plan by the end of the first quarter of 2025, with significant opportunities identified in energy usage and turnaround. Despite the challenges, PBF Energy’s management emphasizes maintaining a strong balance sheet and prioritizing financial stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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