Barclays maintains 'Overweight' Tesoro (TSO); Analyst Day Preview - Key Focus Points

Barclays maintains 'Overweight' Tesoro Corporation (NYSE: TSO) price target of $46.00.

Barclays analyst says, "Capital Spending Projects: We think management will announce additional refining projects at the Analyst Day meeting, which could include a black wax expansion project at the Salt Lake City refinery."

"Excess Cash Priority: Management has previously mentioned that they will focus on debt reduction (despite reaching targeted debt to capitalization ratio of 30% or less), followed by potential project opportunities that offer short payback cycles and high returns. At the end of 3Q11, cash levels stood at $1,135 million. We do not expect any dividend policy announcements."

"Margin Capture Rate and Outlook: We expect management will discuss the
company's margin outlook given the recent drop in CA and PNW margin indicators (currently -$6.4/bl and $1.6/bl from 3Q11 averages of $6.6/bl and $13.9/bl, respectively)."

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 $23.89 yesterday.

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