UPDATE: Oppenheimer Raises PT on Tesoro Following Carson City Transaction

In a report published Tuesday, Oppenheimer analyst Fadel Gheit reiterated an Outperform rating on Tesoro (NYSE: TSO), and raised the price target from $65.00 to $75.00.

In the report, Oppenheimer noted, “We reiterate our Outperform rating on TSO and raise our 12-18 price target to $75 from $65 to reflect the Carson City, CA, refinery and related asset acquisition, approved by the regulators last Friday. This transaction between a motivated seller and an opportunistic buyer is expected to create significant value for TSO shareholders. For essentially the value of inventory, TSO is adding an estimated $500M in annual EBITDA, expanding its refining capacity ~50% and boosting TLLP value by 60% plus coke and co-gen operations. We have adjusted our numbers slightly to reflect the timing of the transaction and updated guidance.”

Tesoro closed on Monday at $64.90.