UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Tesoro Logistics LP as Premium Valuation is Still Warranted

In a report published Monday, Citigroup analyst John K. Tysseland reiterated a Buy rating on

, and raised the price target from $59.00 to $60.00. In the report, Citigroup noted, “TLLP trades at a premium to many of its MLP peers in the Liquid Transportation & Storage sector, however we believe this is more than justified considering our near-term growth outlook and longer-term optionality on future drop-down opportunities. The partnership's growth opportunities are driven by 1) the remaining portion of BP Carson City assets, 2) potential organic growth projects and drop down eligible assets at TSO, and 3) 3rd party revenues likely driven by the partnership's gathering assets in the fast growing Williston/Bakken shale play region as producers continue to ramp up production.” Tesoro Logistics LP closed on Friday at $53.85.