It turns out that one analysts conference is worth more than $500 million to Alon USA Energy Inc. (NYSE:ALJ). Less than a month ago, the company held a conference for US analysts in order to revive its spluttering share. Alon USA chairman David Wiessman and Shraga Biran are undoubtedly pleased by the results - the share has since climbed 30%, and is now 60% above its price at the beginning of the year. The jump in the share price comes at a good time for Alon Group, which announced plans last month for an IPO on the New York Stock Exchange.
At the conference, Alon USA said that it planned to expand production at its refineries by 20,000 barrels a day to 90,000 barrels, and to streamline output. The company also predicted that future plans would improve its annual earnings before interest, taxes, depreciation and amortization (EBITDA).
Investment houses subsequently upgraded their recommendations for the company, which was back on US investors’ agenda after months of somnolence. Credit Suisse raised its recommendation to “Outperform”, and raised its target price by $9 to $41 per share. BMO Capital Markets initiated coverage of the company with a “Market perform” recommendation.
Published by Globes [online], Israel business news - www.globes.co.il - on April 10, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007