UPDATE: J.P. Morgan Raises PT on Tesoro on Attractive Investment Opportunity

In a report published Monday, J.P. Morgan analyst Katherine Lucas Minyard reiterated an Overweight rating on Tesoro Corporation (NYSE: TSO), and raised the price target from $67.00 to $94.00.

In the report, J.P. Morgan noted, “We maintain our Overweight rating on TSO and our view that the stock offers an attractive investment opportunity in the US refining sector. We believe TSO stands out from the peer group given its limited exposure to RINs and its significant opportunity to increase its intake of price-advantaged crudes in the near future. We also believe that TSO's update of the level of Carson-related synergies, expected to be provided at the company's analyst meeting on December 10, and the recently upped dropdown size of $650 mm, vs $500 mm previously, at the midpoint, could prove to be near-term catalysts for the stock. Finally, TSO offers investors the highest potential upside to underlying value in the group, with TSO offering more than 60% potential upside based on our YE14 PT relative to the rest of the group offering 20% potential upside, on average.”

Tesoro Corporation closed on Friday at $57.70.