CVR Energy (CVR) Picks Up a New Bull
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Price: $26.83 -0.92%
Rating Summary:
1 Buy, 7 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
1 Buy, 7 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Shares of CVR Energy, Inc. (NYSE: CVI) are modestly higher Friday after receiving a new bullish recommendation.
Credit Suisse initiated coverage on CVR Energy with an Outperform rating and $30 price target, saying earnings power is not being priced in.
"CVI is a complex independent refiner based in the US Mid-Con, and also owns a controlling interest in a nitrogen fertilizer MLP (UAN)," notes analyst E. Westlake. "We believe CVI is ideally positioned for today's macro environment elevated refining margins in the Mid-Con and low crop inventories set CVI up for strong earnings in 2011-2012. We forecast EBITDA of $507M in '11, and $511M in '12. Our EPS forecasts are 37% above 2011 consensus and 32% above 2012."
The analyst calls CVR a unique story, providing exposure to high quality refining assets which benefit from location and can process up to 22 percent of cheap Canadian heavy crude and 75 percent discounted local crudes. It also owns the only fertilizer plant in North America to utilize pet coke gasification, and this should earn supernormal fertilizer returns for several years.
Shares of CVR last traded up 1.6 percent to $22.84.
Credit Suisse initiated coverage on CVR Energy with an Outperform rating and $30 price target, saying earnings power is not being priced in.
"CVI is a complex independent refiner based in the US Mid-Con, and also owns a controlling interest in a nitrogen fertilizer MLP (UAN)," notes analyst E. Westlake. "We believe CVI is ideally positioned for today's macro environment elevated refining margins in the Mid-Con and low crop inventories set CVI up for strong earnings in 2011-2012. We forecast EBITDA of $507M in '11, and $511M in '12. Our EPS forecasts are 37% above 2011 consensus and 32% above 2012."
The analyst calls CVR a unique story, providing exposure to high quality refining assets which benefit from location and can process up to 22 percent of cheap Canadian heavy crude and 75 percent discounted local crudes. It also owns the only fertilizer plant in North America to utilize pet coke gasification, and this should earn supernormal fertilizer returns for several years.
Shares of CVR last traded up 1.6 percent to $22.84.
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