Deutsche Bank Securities Cautious Of Tesoro (TSO)

Deutsche Bank Securities analysts Paul Sankey, Silvio Micheloto and David T. Clark rated Tesoro Corporation

a Hold, with a price target of $15 per share. The analysts were concerned that although margins had strengthened, utilization was at low historical standards. Because refiners were back from a turnaround season, there is a chance that margins could fall significantly. The Deutsche Bank Securities analysts wrote, "downside risks are in more balance sheet deterioration on the negative side, excess capacity build-up on the West Coast due to low demand that would prevent refining margins to strengthen, higher level of imports, and accidents/explosions. Key upside risk is the tightening of the supply-demand balance through better-than-expected recovery in demand for refined products or refining capacity shutdowns in TSO's main markets."