PBF Energy initiated with an Outperform at BMO Capital

BMO Capital initiated coverage of PBF Energy with an Outperform rating and $60 price target. The analyst says nobody has benefited more during the refining upcycle than PBF with its elevated financial leverage incurred during COVID erased, while key PADD 1 and 5 markets have structurally improved from refinery closures and conversions, with more to come in California and PADD 1 product inventories remaining tight. PBF has higher operating leverage to cracks, which have retraced recently, although its net cash position and discounted valuation supports a favorable risk/reward, the analyst tells investors in a research note.