UPDATE: Oppenheimer Initiates Coverage on Tesoro Logistics LP with Outperform Rating, $61 PT Following Recent Pullback

In a report published Wednesday, Oppenheimer analyst Bernard Colson initiated coverage on Tesoro Logistics LP TLLP with an Outperform rating and $61.00 price target. In the report, Oppenheimer noted, “We initiate coverage of Tesoro Logistics (TLLP) with an Outperform rating and 12- to 18-month price target of $61. We recommend purchase after the stock's recent pullback from levels above $68. We like TLLP's fee-based contracts (with inflation escalators) and high expected distribution growth rate. We like crude oil infrastructure in general (because of US oil supply growth trends) and TLLP's High Plains system (Bakken) specifically. We believe TLLP will continue to grow through both organic projects and acquisitions. Our one concern is that it appears necessary for TLLP to issue equity, although management probably has plenty of flexibility on timing. We are buyers despite equity needs and would be aggressive into an issuance.” Tesoro Logistics LP closed on Tuesday at $53.68.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorInitiationAnalyst RatingsBernard ColsonOppenheimer
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!