BMO reiterates PBF Energy stock rating on strong Q3 outlook

BMO Capital has reaffirmed its Market Perform rating on PBF Energy (NYSE:PBF) with a price target of $80.00. The stock currently trades near $81.08, its 52-week high of $82.61, having surged 189% year-to-date. The firm adjusted its Q3 2026 earnings estimate to $11.99 per share, up from $9.78 per share, accounting for mark-to-market changes.

PBF Energy boasts an appealing P/E ratio of 6.85, with analysts projecting $18.34 per share in full-year 2026 earnings. The firm anticipates steady performance at all refineries and high indicators to bolster operational results in Q3. Management remains bullish on the refining sector and intends to leverage surplus cash flow to enhance long-term performance and cost structure.

BMO believes PBF Energy could consider raising its dividend, currently yielding 1.43% and raised for four consecutive years. ProTips suggest PBF Energy is undervalued, offering 13 additional investment insights. Recently, PBF Energy announced a $550 million issuance of 0% exchangeable senior notes due 2032 through its subsidiary, PBF Holding Company LLC, to be used for call transactions, note redemption, and general corporate purposes.

While UBS maintains a Buy rating citing a strong refining outlook, Freedom Broker downgraded PBF Energy to a Sell rating from Hold due to geopolitical concerns. BTIG warns of a potential correction in oil refining stocks following their strong performance in the S&P 500 Oil & Gas Refining and Marketing Index.