Analysts have raised their price target for Par Pacific Holdings from $35.50 to $39.63, citing improved profit margin forecasts and a less negative outlook for revenue growth.
What's in the News
- Par Pacific Holdings completed a share buyback tranche, repurchasing 1,605,727 shares (3.07%) for $27.94 million from April 1, 2025 to June 30, 2025. This closes out a planned buyback totaling 4,649,741 shares (8.58%) for $68.8 million (Key Developments).
- Par Pacific signed definitive agreements to form Hawaii Renewables, LLC, a joint venture with Mitsubishi Corporation and ENEOS Corporation, aimed at producing renewable fuels at Par Pacific's refinery in Kapolei, Hawaii (Key Developments).
- As part of the venture, Mitsubishi and ENEOS will acquire a 36.5% equity stake in Hawaii Renewables for $100 million. Par Pacific will retain the remaining ownership and oversee operations through its affiliate, Par Hawaii Refining, LLC (Key Developments).
- The Hawaii Renewables facility will be the state's largest renewable fuels manufacturing plant. It is targeting production of approximately 61 million barrels per year, including sustainable aviation fuel, renewable diesel, renewable naphtha, and low carbon liquefied petroleum gases (Key Developments).
- The facility is designed to produce up to 60% sustainable aviation fuel to support decarbonization of Hawaii's air travel sector. It will have operational flexibility to shift output based on market demand (Key Developments).
Valuation Changes
- Fair Value: Increased from $35.50 to $39.63, reflecting a higher estimated intrinsic value per share.
- Discount Rate: Increased slightly from 8.07% to 8.09%, indicating a minor rise in the required return by analysts.
- Revenue Growth: The projected decline has narrowed, improving from -6.66% to -3.53%.
- Net Profit Margin: Increased significantly from 4.13% to 10.81%, showing stronger expected profitability.
- Future P/E: Decreased notably from 7.00x to 2.71x, indicating a lower anticipated valuation relative to future earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.