HF Sinclair price target lowered by $3 at Wells Fargo, here’s why

Wells Fargo lowered the firm’s price target on HF Sinclair to $64 from $67 and keeps an Overweight rating on the shares. HF Sinclair’s transformation from Mid-Continent refining and lubes into a larger and more geographically diverse company with a meaningful renewable fuels operation is proceeding apace, the firm notes. The just completed consolidation of its MLP subsidiary, HEP, further streamlines and simplifies HF Sinclair’s operating and financial structures. Eliminating the quarterly distribution, avoiding future escalation clauses on HF Sinclair’s core refining operations and the potential to monetize non-core assets should all be CFFO enhancing in Wells’ view.