Goldman Lists Par Pacific with 20%+ Upside if Brent Hits $75
Goldman Sachs strategist Neil Mehta included Par Pacific in a 10-stock Buy list targeting at least 20% upside if Brent crude remains at $75 per barrel, highlighting the small-cap’s underappreciated risk/reward skew. The thesis rests on a bullish long-term oil view that boosts inventory valuations for energy services firms.
1. Inclusion in Goldman Sachs Buy List
Goldman Sachs strategist Neil Mehta selected Par Pacific as one of ten oil and energy names rated Buy with potential for at least 20% gains, citing its small-cap profile and favorable valuation dynamics at a normalized Brent crude price of $75 per barrel.
2. Valuation and Upside Drivers
The upside thesis for Par Pacific hinges on its inventory valuation model, which benefits from long-dated crude prices. At a maintained Brent price of $75, the company’s refining and logistics assets may see expanded margins, enhancing its underappreciated risk/reward skew.
3. Geopolitical Oil Outlook
Persistent Middle East tensions have sustained elevated oil prices, reinforcing Par Pacific’s outlook. Any sustained rally above $75 per barrel would underpin the firm’s asset valuations and could trigger a re-rating by investors seeking midstream and downstream exposure.