Credit Suisse Upgrades Tesoro Corporation (TSO) to Outperform
- Wall St. edges higher, supported by banks, telecoms
- Equinix (EQIX) Announces $3.6B Acquisition of Data Center Portfolio from Verzion (VZ)
- Deal Progress Said to Slow as Johnson & Johnson (JNJ) Puts Actelion (ALIOY) Under Microscope - Source
- Trump Wants to Cancel New Air Force One Order with Boeing (BA)
- Roper Industries (ROP) to acquire Deltek in $2.8B Deal
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Credit Suisse upgraded Tesoro Corporation (NYSE: TSO) from Neutral to Outperform with a price target of $100.00 (from $85.00), included with a broader call on the refiners.
The firm said while the best entry point for the group will be some time in the Nov-Jan shoulder season, they reiterate the message that there is a good TSR compounding opportunity for some names, including TSO.
Analyst Edward Westlake commented, "TSO have been assertively improving their refining business, diversifying/adding to logistics and are looking to grow retail. Management have strong credibility and have consistently delivered self-help. Earlier this year, we downgraded back to Neutral, fearing an over-reaction to the downside for West Coast margins. PADD V gasoline inventories are mid-range, diesel looks high. However, demand continues to grow and there is decent industry wide maintenance in 2H16. This could set TSO up well for 2017. Of equal importance to our EBITDA forecasts is securing the permits for the LA Integration and West Coast Xylene project. TSO management outlined a strategy for 3.5-4bn of EBITDA by 2018. Our forecasts are lower for project delays and we don’t give credit for retail M&A ex-ante. Nevertheless on these forecasts, there is the potential for capital appreciation."
Shares of Tesoro Corporation closed at $80.31 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades PennTex Midstream Partners, LP (PTXP) to Hold
- UPDATE: Stifel Upgrades Antero Midstream Partners LP (AM) to Buy
- UPDATE: Stifel Downgrades Coca-Cola European Partners (CCE) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Related EntitiesCredit Suisse
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!