Inside the Minds of Tesoro’s Analysts



Analyst ratings for Tesoro

In this series, we’ve examined Tesoro’s 3Q16 estimates, refining margin outlook, and stock performance ahead of its earnings release expected on October 31, 2016. In this part, we’ll look at analysts’ ratings for the stock.

The above table shows that six of the ten firms have rated Tesoro (TSO) a “buy,” “overweight,” or “outperform.” The remaining four firms have rated Tesoro a “hold.” 

The highest 12-month price target for TSO stands at $105, indicating a 28% gain from current levels. The average 12-month price target for TSO stands at $95, indicating a 16% gain from current levels. None of the above firms have given Tesoro a “sell” rating. TSO currently trades at its lowest price target of $82 per share.

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Barclays gave Tesoro the highest price target. RBC Capital Markets gave it the lowest price target. Macquarie and Credit Suisse are positive on the stock and have given it a price target of $100 per share. On the other hand, J.P. Morgan, Evercore ISI, and Raymond James have given “neutral,” “hold,” and “market perform” recommendations, respectively, on the stock.

Analyst ratings for peers

Tesoro’s (TSO) peers Valero Energy (VLO), Delek US Holdings (DK), and Alon USA Energy (ALJ) have been rated “buy” by 65%, 33%, and 10% of analysts surveyed, respectively. If you’re looking for exposure to global energy stocks, you can consider the Vanguard FTSE All-World ex-US ETF (VEU).

In the next few parts, we will evaluate short interest, institutional holding, and implied volatility in Tesoro (TSO) ahead of its 3Q16 earnings.


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