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PBF Energy downgraded to Market Perform from Outperform at BMO Capital

BMO Capital downgraded PBF Energy to Market Perform from Outperform with a price target of $35, down from $42. PBF shares have already corrected with lower cracks, while prior “operational hiccups are likely in the rearview, and the balance sheet remains strong,” the analyst tells investors in a research note. However, the firm says that as a higher cost refiner, it sees PBF’s margins, earnings, and free cash flow being more pressured with peers, leaving a less attractive valuation and capital return potential.

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