UPDATE: UBS Upgrades Tesoro Corporation (TSO) to Buy; Several Near and Mid-Term Catalysts

June 1, 2012 7:34 AM EDT
Get Alerts TSO Hot Sheet
Price: $80.80 +1.49%

Rating Summary:
    17 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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(Updated - June 1, 2012 10:46 AM EDT)

UBS upgraded Tesoro Corporation (NYSE: TSO) from Neutral to Buy. PT raised from $30 to $33.

Analyst, Craig Weiland, said, "TSO has underperformed refiner peers by 25% YTD due to a challenging California refining environment in 1Q & a dearth of 1H12 catalysts. However, West Coast refining margins have recovered during 2Q on the back of lower PADD 5 refinery utilization rates & tightening product inventories. Couple this with potential asset monetizations in 2H12-early ’13, & TSO’s FCF yield could improve to 26%. We estimate these factors will provide for shareholder friendly actions such as the reinstitution of a recurring dividend & share buybacks in 2013."

UBS raises FY12 EPS estimate from $4.51 to $4.61 and FY13 from $3.44 to $3.45.

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 $22.12 yesterday.

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