UBS initiated coverage of eight independent refiners, stating that the firm has a favorable view of the sector given global refinery capacity reductions, Russian product bans and wider heavy/light differentials. The firm, which expressed a preference for refiners with high margin capture, lower operating expense per barrel, diversification of earnings and high shareholder returns, started three names with Buy ratings. Those include Valero (VLO), on which the firm set a $176 price target, Marathon Petroleum (MPC), with a $165 price target, and Phillips 66 (PSX), on which it set a $139 price target. UBS also started five refiners with Neutral ratings: Par Pacific (PARR), Delek US (DK), PBF Energy (PBF), HF Sinclair (DINO) and CVR Energy (CVI).
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