The Word on the Street: What Analysts Recommend for Tesoro after 1Q16

In this series, we’ve examined Tesoro Corporation’s (TSO) 1Q16 earnings, refining margins, stock performance, and recent updates. In this part, we’ll examine the ratings of analysts covering the stock.

The table below shows that five of ten firms have rated Tesoro as “buy,” “overweight,” or “outperform.” The highest 12-month price target for TSO stands at $125, indicating a 63% gain from current levels. The remaining six firms have rated Tesoro as “hold.”

The average 12-month price target for TSO stands at $108, indicating a 41% gain from current levels. None of the above firms gave a “sell” rating to Tesoro. In fact, TSO’s lowest 12-month price target stands at $91, implying an 18% gain from current levels.

The highest price target for Tesoro is set by Morgan Stanley, whereas the lowest price target is specified by RBC Capital Markets. Barclays, Macquarie, Credit Suisse, and Cowen have given price targets above $100 per share for TSO. On the other hand, firms like Wells Fargo Securities, Wolfe Research, and Evercore ISI have given “hold” or “market/peer perform” recommendations for the stock.

By comparison, Western Refining (WNR), PBF Energy (PBF), and Alon USA Energy (ALJ) have been rated as “buys” by 43%, 67%, and 9%, respectively, of analysts surveyed. For broad-based exposure to energy sector stocks, you might consider the Energy Select Sector SPDR ETF (XLE).