Jefferies Starts Tesoro Corporation (TSO) at Buy, Tesoro Logistics Partners, LP (TLLP) at Hold

Jefferies initiates coverage on Tesoro Corporation (NYSE: TSO) with a Buy rating and a price target of $101 and Tesoro Logistics Partners, LP (NYSE: TLLP) with a Hold rating and $49 price target.

Analyst Corey Goldman commented, "Tesoro boasts a premier set of western-US energy assets focused in refining, marketing, and distribution, ~$500-$800mm of identified EBITDA suitable for potential drop-down into TLLP, dividend & distribution growth potential, and asset diversity which offers cash flow support amid commodity price volatility. That said, we believe TSO support may be needed for TLLP to achieve its stated YE17 EBITDA target & see unit upside capped without it; however, the recognition of this MLP need is a potentially negative catalyst."

For an analyst ratings summary and ratings history on Tesoro Corporation click here. For more ratings news on Tesoro Corporation click here.

Shares of Tesoro Corporation closed at $74.42 yesterday.

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