UPDATE: Credit Suisse Reiterates On Tesoro As Self-Help Drives Upside

In a report published Wednesday, Credit Suisse analyst Edward Westlake reiterated an Outperform rating on Tesoro Corporation TSO, and raised the price target from $86.00 to $100.00. In the report, Credit Suisse noted, “TSO has laid out a strategy to deliver >$3bn of EBITDA by 2017. Our waterfall on self-help suggested $2.8bn+ was possible, even with weaker margins. 2016 consensus was $2.3bn. After today's presentation we believe $3bn of 2017 EBITDA looks achievable at a WTI-Brent spread of $5/bbl and weaker mid-cycle California refining margins (they may positively surprise). We raise our 2017 EBITDA to $2.9bn and our target price to $100/sh (a discount to future value of $121/sh). Much of the delta in earnings is delivery of refining self-help. However, we note that high multiple logistics should be a meaningful 30% of future EBITDA.” Tesoro closed on Tuesday at $76.93.