Benchmark Raises Price Target on Tesoro Corp (TSO) Due to Stronger Earnings

Benchmark is reaffirming its Buy rating on shares of Tesoro Corporation (NYSE: TSO) and is raising its price target from $25 to $32 on a stronger mid-cycle earnings assessment.

The firm is is raising its FY11 and FY12 EPS estimates from $5.86 and $5.46 to $6.83 and $6.05 due to higher than previously anticipated margins and refinery operating rates, which Benchmark now believes will be sustainable going forward.

An analyst at Benchmark comments, "The more constructive earnings, and thus operating cash flow outlook, enhances our confidence with respect to our previously stated beliefs concerning 2012 dividend reinstatement and meaningful share buybacks."..."We furthermore believe that management’s debt reduction objectives can be readily accomplished in 2012 under our operating cash flow scenario with more than ample flexibility to accommodate our projected $300 million share buyback program."

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 $23.72 yesterday.

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