A Look at Par Pacific Holdings’s Valuation as New Renewable Fuel Alliances Signal Long-Term Growth Prospects

Par Pacific Holdings (PARR) is doubling down on its renewable fuels strategy, signing a new commodity swap agreement through Hawaii Renewables while forming key alliances with Mitsubishi and ENEOS. These steps highlight its commitment to future growth in cleaner energy.

See our latest analysis for Par Pacific Holdings.

Par Pacific’s recent agreements have caught investor attention, fueling optimism about earnings expansion from renewables, even as the stock dipped slightly this past week. Looking at the bigger picture, total shareholder returns over the past year have been modest. However, ongoing strategic moves suggest momentum for longer-term growth may be building.

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With shares giving up some ground after a year of strong gains and trading just below analyst price targets, the big question is whether Par Pacific stock remains undervalued or if future growth is already reflected in the price.

Most Popular Narrative: 3.3% Undervalued

With Par Pacific Holdings' fair value calculated at $35.50, just above the last close at $34.32, analysts believe a modest upside still exists. There is a lot riding on market shifts and bold operational bets driving this number.

The strategic partnership with Mitsubishi and ENEOS, along with the upcoming SAF (Sustainable Aviation Fuel) project launch, positions Par Pacific for growth in renewable fuels; this enhances market access, leverages global feedstock procurement expertise, and is expected to positively contribute to earnings and net margin expansion starting in 2026.

Read the complete narrative.

Curious how ambitious revenue and margin forecasts, as well as a future profit multiple below industry norms, shape this near-fair valuation? There is a pivotal financial assumption powering the price target. Discover what it is and why it could become the linchpin for Par Pacific’s next move.

Result: Fair Value of $35.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Par Pacific's regional concentration and aging refinery assets could threaten stability and earnings if regulatory or operational setbacks arise.

Find out about the key risks to this Par Pacific Holdings narrative.

Build Your Own Par Pacific Holdings Narrative

Prefer a hands-on approach or have a different perspective? Dive into the latest data and craft your own view in just minutes: Do it your way.

A great starting point for your Par Pacific Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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