UPDATE: Dahlman Rose Initiates Northern Tier Energy at Buy with $23 PT on Cost Reduction

Dahlman Rose initiated its coverage on Northern Tier Energy NTI with a Buy rating and a price target of $23. Dahlman Rose said, "While the turnaround in 2013 does meaningfully reduce dividend potential for that year, we believe the substantial advantages of the current crude differential environment and full operability for five of the next six quarters should lower NTI cost basis by a significant margin, rendering the units an attractive call option on normalized differentials. Our $23 price target is based on a 10% average dividend yield." Northern Tier Energy closed at $16.90 on Thursday.