Skip to main content

Market Overview

UPDATE: Bank of America Downgrades Northern Tier Energy on Near-Term Risks

Share:

In a report published Tuesday, Bank of America Merrill Lynch analyst Jason Smith downgraded Northern Tier Energy (NYSE: NTI) from Buy to Neutral, and lowered the price objective from $30 to $27.

In the report, Bank of America noted, “NTI has had a very strong run since its IPO just over one year ago, with the units up 70% - when including distributions of $4.66/unit, this implies a total return of 103%. But as a pure play on the Mid-Continent, where both Bakken and Heavy Canadian spreads have narrowed significantly relative to coastal grades, this presents a material headwind for distribution expectations. Coupled with a smaller turnaround in the Fall, the start up of the coker at the BP Whiting refinery, and higher than expected capex over the back half of the year, we view the near-term risks post 2Q earnings as somewhat difficult to ignore, therefore, we downgrade to Neutral, PO to $27.”

Northern Tier Energy closed on Monday at $23.75.

Latest Ratings for NTI

DateFirmActionFromTo
Jun 2016JP MorganMaintainsNeutral
Apr 2016Credit SuisseDowngradesOutperformNeutral
Apr 2016BarclaysMaintainsUnderweight

View More Analyst Ratings for NTI

View the Latest Analyst Ratings

 

Related Articles (NTI)

View Comments and Join the Discussion!

Posted-In: Bank of America Bank of America Merrill Lynch Jason SmithAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com