Dec 14 (Reuters) - Goldman Sachs said it raised its rating on U.S. refiners to “attractive” from “neutral,” following additional underperformance of the group versus the energy sector and S&P 500 .SPX index.
“Refining margins and refining equities we think look very inexpensive currently versus crude oil prices and crude oil leveraged energy equities,” the brokerage said in a research note.
Goldman also added Holly Corp HOC.N and CVR Energy Inc (CVI.N) to its Americas buy list, saying it has favorable view on the companies’ Mid-Continent asset positioning, their management team, and organic growth potential.
The two companies joined the existing “buy”-rated refiners Sunoco Inc (SUN.N) and Valero Energy Corp (VLO.N) as well as the refining-leveraged integrated oil Marathon Oil Corp (MRO.N), it said.
It also raised its price target on CVR to $31 from $27 and maintained $63 price target on Holly.
The brokerage also removed Murphy Oil Corp (MUR.N) from the list on the basis of a less favorable relative valuation. (Reporting by Purwa Khandelwal in Bangalore; Editing by Amitha Rajan, Anil D‘Silva)