UPDATE: Credit Suisse Reiterates On Western Refining As 2Q Earnings Risks Are Receding

In a report published Friday, Credit Suisse analyst Edward Westlake reiterated a Neutral rating on Western Refining WNR, and raised the price target from $48.00 to $51.00. In the report, Credit Suisse noted, “Back in January, we downgraded 3 refiner stocks to signal that investors were too pessimistic on US crude prices and it was time to buy E&P/OFS. Last Friday, in our PM snapshot, we argued that the producer rally may be running into some resistance and that there could be some rotation into refining. Today, we are adding back 2 of the names we downgraded, DK, WNR, to add to ALJ and ALDW in the Permian basket. "We like these names for their Midland exposure (the Permian Party). However, this is also a signal that a) risks to 2Q refiner earnings are receding in general, b) there is some relative value in refining vs Energy and c) risks on the US crude market increase as we move through the year (seasonality).” Western Refining closed on Thursday at $43.44.