UPDATE: Imperial Capital Initiates Western Refining at In-Line; Balancing Yield and Growth

Imperial Capital initiated coverage on Western Refining

with an In-Line rating and a $28 price target. Imperial Capital commented, "Due to strong cash flows resulting from its ability to process price-advantaged WTI-based barrels, WNR has materially strengthened its balance sheet over the past two years and is now shifting capital towards growth opportunities across its system and returning cash to shareholders. … Given the El Paso refinery's proximity to the Permian Basin, WNR is actively expanding its crude logistics assets. Although WNR continues to explore strategic alternatives for this asset base, the formation of a logistics-based master limited partnership is dependent upon further growth." Western Refining closed at $26.17 on Tuesday.