BofA analyst Doug Leggate believes a “strategic pause is appropriate to re-assess next steps in what is a rapidly evolving landscape for refining.” Accordingly, the firm downgraded all its Buy-rated refiners to Neutral. After 70% average share upside since BofA’s “Regional Golden Age thesis” in March 2022, much of the reset in value has been discounted, the analyst tells investors in a research note. As such, the firm believes the stocks are no longer compelling and it sees risks that near-term margins have peaked. BofA downgraded Valero (VLO), PBF Energy (PBF), Phillips 66 (PSX), Marathon Petroleum (MPC) and HF Sinclair (DINO) to Neutral from Buy, leaving it with no Buy ratings across the U.S. refiners for now. The firm kept a Neutral rating Delek US (DK).
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