Analyst Actions: Credit Suisse Raises Western Refining PT from $34 to $35.50; Shares Down 1%

By Staff,

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Credit Suisse has increased its price target on Western Refining Inc. ( WNR ) to $35.50 from $34.

Nevertheless, shares of Western Refining are down 1.35% to $24.08 in afternoon trading. Western Refining has a 52-week range of $11.17 - and a 52-week high of $28.04. The company has a market cap of $2.176 billion and a P/E ratio of 12.17.

Credit Suisse raised its 3Q EPS estimates by 6%. However, the analyst firm said it is concerned that margins could fall.

"We note that there is still some room for 2012 consensus EPS to rise due to a strong start to 4Q12," Credit Suisse reported. "We are 5% above 2013 EBITDA consensus, 4% above in 2014."

With crude overwhelming the Gulf earlier than prior projects CS incorporates an LLS-Brent inversion from 2H13 and increase the LLS discount. This leads to higher Gulf coast refining margins than their prior forecast. With product inventories tight they model higher margins through 2013, assuming that the refining system will take some time to normalize.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: WNR

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