Wells Fargo upgraded this oil refiner that could rally more than 20%

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Wells Fargo upgraded this oil refiner that could rally more than 20%
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The Wall Street firm upgraded the stock to overweight from equal weight.

HF Sinclair Corporation shares could have further upside in the case the petroleum refinery sells its lubricants and specialty products business, according to Wells Fargo. Analyst Roger D. Read upgraded shares to overweight from equal weight, saying HF Sinclair could unlock value through a sale much like peer Valvoline did when it agreed to sell its global products business to Saudi Aramco last year. Read expects a similar deal could raise HF Sinclair shareholders' returns by more than 30%.

mountain DINO shares 1-year The analyst further noted HF Sinclair is about to enter a seasonally strong period for the Western refining region, with gasoline demand set to ramp up as well. What's more, the analyst expects a CEO transition at the firm will go smooth, and said the firm will continue to retain investor confidence with its dividend and share buyback programs.

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