Analysts’ Ratings for Tesoro before Its 4Q16 Earnings



Analysts’ ratings for Tesoro

In this series, we examined Tesoro’s (TSO) 4Q16 earnings versus analysts’ estimates. We also analyzed Tesoro’s refining margin trend in 4Q16. We discussed Tesoro’s stock performance on February 6, 2017. In this part, we’ll examine analysts’ ratings for Tesoro.

Tesoro has been rated by 18 analysts. Of the 18 analysts, 13 (or 72%) analysts rated it as a “buy” or “strong buy,” five (or 28%) analysts rated it as a “hold,” and no analysts rated it as a “sell” or “strong sell.”

Tesoro could witness a change in its ratings as analysts drill further down the 4Q16 numbers. Tesoro’s mean target price of $105 per share implies a 26% gain from the current level.

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Analysts’ ratings for peers

Tesoro’s peers Delek US Holdings (DK), HollyFrontier (HFC), and Western Refining (WNR) have been rated as a “buy” by 36%, 31%, and 25% of the analysts, respectively. Other downstream players like PBF Energy (PBF) and Alon USA Energy (ALJ) have been rated as a “buy” by 42% and 25% of the analysts, respectively. For broad-based exposure to energy sector stocks, you can consider the Energy Select Sector SPDR ETF (XLE).

In the next part, we’ll look at the change in Tesoro’s implied volatility before its 4Q16 earnings.


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