UPDATE: Dahlman Rose Upgrades Western Refining to Buy

Dahlman Rose has published a research report on Western Refining

and has upgraded the company from Hold to Buy with increased confidence in the sustainability of Brent/WTI spreads into 2H12. In the report, Dahlman Rose writes, "With the start up of Seaway and stability of Brent/WTI differentials in its aftermath, it is our view that the mid-con refiners have experienced an important catalyst. Uncertainty over the impact of the initial flows of Seaway has been a major overhang for the group, and while differential compression remains the primary risk to WNR shares, we believe the passage of the start up date represents an important psychological hurdle, despite the fact that July crudes currently trading should have already taken into account much of the impact." Dahlman Rose has established a $25 price target on Western Refining, which is currently trading up $0.12 from yesterday's $19.57 closing price.