Citi Positive On Oil Refiners (SUN)

Citi Investment Research is positive on the oil refiners, including Sunoco, Inc. SUN. It raised the price target to $39 from $36, but kept its Hold rating. In a note to clients, Citi writes, "We have seen a steady improvement in refining margins since bottoming in 2009 at $6.67 per barrel (US Gulf Coast). We expect margins this year will average $7.50 per barrel and continue to recover next year to almost $9.00 per barrel. Given the operating leverage of refiners, we expect earnings to be up almost 40% on average next year." Shares of SUN lost 14 cents on Friday to close at $39.20.