BofA cuts PTs of US refining stocks on potential recession risk
15/04/2025 15:31
** BofA Global Research says that while recession in the U.S. is not the most likely outcome, it will consider the potential impact of a recession on refining stocks ** Says tariff uncertainty can weigh on investment, consumption and employment, creating a recessionary environment ** Brokerage says tariff policy has been changing by the day; global tariff burden remains high considering a >100% rate on China and 10% blanket tariff for the rest of the world ** "A recession scenario would impact refiners via falling driving-related consumption, and falling shipping volumes which would impact distillate demand" - brokerage says Brokerage also cuts price targets on the following firms:
| Company | New PT | Old PT | Upside/downside to stock's last close |
| Chevron CVX.N | $172 | $180 | 27.1% |
| Exxon Mobil XOM.N | $114 | $122 | 10.3% |
| Occidental Petroleum OXY.N | $42 | $52 | 10.8% |
| Valero Energy VLO.N | $121 | $143 | 9.7% |
| Phillips 66 PSX.N | $126 | $147 | 28.8% |
| PBF Energy PBF.N | $14 | $17 | 7.3% downside |
| Marathon Petroleum MPC.N | $137 | $153 | 9.7% |
| Delek US Holdings DK.N | $12 | $14 | 4.3% downside |
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