Goldman Sachs’ (GS, Financial) outlook for the gas and oil industry is, in general, moderately positive.
The company released new ratings for several energy stocks.
Goldman Sachs downgraded Valero Energy (VLO, Financial) from buy to neutral and set a new target price of $73 per share. Neil Mehta, an analyst at Goldman Sachs, cites the reason for this downgrade as “more balanced risk-reward following the stock's outperformance.”
The independent oil refiner and producer of ethanol has a market cap of $28.56 billion and an enterprise value of $33.7 billion, for an EV/EBITDA ratio of 6.43.
Valero Energy is currently trading around $63.85 per share on the New York Stock Exchange with a price-earnings (P/E) ratio of 13.96 and a price-book (P/B) ratio of 1.44. The forward P/E ratio is 10.27. For 2017, analysts forecast EPS of $4.91. The analysts’ average target price per share is $73.69. The recommendation rating, which ranges between 1.0 (Strong Buy) and 5.0 (Sell), is 2.3.
The company distributes an annual dividend of $2.80 through quarterly payments of 70 cents, for a dividend yield of 4.20%.
The financial firm kept Marathon Petroleum (MPC, Financial) at a buy rating.
Marathon Petroleum, which refines, markets, retails and transports oil products, has a market cap of $27.1 billion and an EV/EBITDA ratio of 7.88.
Marathon Petroleum is currently trading around $52.22 per share with a P/E ratio of 23.03 and a price-book P/B ratio of 2.07. The forward P/E ratio is 13.64. The analysts’ EPS estimate is $2.93 for 2017. The average target price per share is $61.69. The recommendation rating is 1.7.
The company distributes an annual dividend of $1.44 through quarterly payments of 36 cents, for a dividend yield of 2.72%.
Goldman Sachs upgraded Delek US Holdings Inc. (DK, Financial)Ă‚ from neutral to buy.
The company, which is engaged in petroleum refining and logistics, is trading around $24.58 per share with a P/E ratio of -13.39 and a P/B ratio of 1.53.
The company has a market capitalization of $1.52 billion and an enterprise value of $1.77 billion, for an EV/Ebitda ratio of 15.27. For 2017, analysts forecast a loss of 20 cents per share, which represents a 87.30% improvement from a year ago.
The company distributes an annual dividend of 60 cents through quarterly payments of 15 cents, for a dividend yield of 2.39%.
The firm confirmed a sell rating for HollyFrontier (HFC, Financial).
HollyFrontier has a market capitalization of $4.66 billion and an enterprise value of $6.97, which leads to an EV/Ebitda ratio of 8.32.
The energy stock is currently trading around $26.57 per share with a P/E ratio of -14.24, a P/S ratio of 0.40 and a P/B ratio of 1.02. The forward P/E ratio is 10.89.
Analysts set the average target price for HollyFrontier at $31.83, which ranges between a low of $23 per share and a high of $42 per share. The recommendation rating is 3 out of 5.
Disclosure: I have no positions in any stock mentioned in this article.
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