Fri Sep 20 09:11:52 UTC 2024: ## Par Petroleum Stock Downgraded by Piper Sandler, but Positive Earnings Remain
**New York, NY** – Par Petroleum (NYSE: PARR) saw its stock rating downgraded from Overweight to Neutral by investment firm Piper Sandler on Friday. The firm cited several factors that could pose risks to the company’s value in the upcoming year, including concerns about Asian refining margins, anticipated maintenance in the first half of 2025, and potential liquidity issues.
Piper Sandler also lowered its price target for Par Petroleum to $23.00 from $37.00. Despite acknowledging the company’s underappreciated earnings power and non-refining EBITDA generation, the firm expressed concerns that these risks could overshadow the expected positive earnings per share in 2025.
While Piper Sandler downgraded the stock, it’s important to note that Par Petroleum recently reported solid Q2 2024 earnings, with an adjusted EBITDA of $82 million and an adjusted net income of $0.49 per share. These results were bolstered by strategic growth initiatives, including investments in Billings and renewable projects in Hawaii. The company also repurchased $66 million worth of shares, demonstrating its commitment to enhancing shareholder value.
Other analysts, such as Mizuho Securities and TD Cowen, have also revised their price targets for Par Petroleum, reducing them to $30.00 and $32.00 respectively, but maintaining positive ratings on the stock.
Despite the downgrade, Par Petroleum remains committed to strategic growth. The company plans to invest approximately $120 million in its Billings facility over the next four to five years, anticipating continued modest restocking of inventories and near mid-cycle margin levels.
Investors should carefully consider the risks outlined by Piper Sandler while also taking into account Par Petroleum’s recent positive financial performance and ongoing growth initiatives.
First Piper 