UPDATE: Bank Of America Reiterates On Tesoro Following Analyst Day

In a report published Wednesday, Bank of America analyst Doug Leggate reiterated a Buy rating on

, and raised the price target from $70.00 to $88.00. In the report, Bank of America noted, “Tesoro's analyst review combined for the first time the strategy update from TLLP, underlining the extent to which Tesoro's outlook and investment case is increasingly linked to the outlook its midstream expansion. Headline target EBITDA of ‘over $3bn' by 2017 is worthy of attention and places TSO with a strong relative outlook in a sector that near term likely faces narrowing differentials on the US Gulf Coast and an increasingly unfavorable gasoline balance in contrast to a stable / improving market in TSO's core California region. While TSO has had a strong relative run versus peers, we still view upside as attractive. Buy, PO $88.” Tesoro closed on Tuesday at $76.93.