Barclays Adjusts Ratings For Major Refineries

In a report released Friday, Barclay analyst Paul Cheng released coverage on major refiners such as Petroleo Brasileiro Petrobras SA PBR, Exxon Mobil XOM, ConocoPhillips COP, Chevron CVX and Suncor Energy SU.

• Petroleo Brasileiro Petrobras SA - upgraded from Equal Weight to Overweight; price target raised from $22 to $23.
• ExxonMobil - downgraded from Equal-Weight to Underweight; price target raised from $100 to $105.
• Cenovus - downgraded from Overweight to Equal-Weight; price target decreased from $39 to $38.

The Barclays note released an estimate on major oil refineries to have a discount to its net asset value of 17 percent or a discount excluding Petrobras of 11 percent, based on its forecast of long-term Brent prices (assuming $100 per barrel). Barclays forecasts oil prices near $90 to $95 per barrel.

Barclays ranked Suncor and ConocoPhillips as displaying the most value for the next 12 months, while ExxonMobil and Chevron ranked at the bottom. The note suggested preference in Suncor and ConocoPhillips against Exxon and Chevron for a year to date range, measured on a risk-adjusted basis.