We are maintaining our Outperform recommendation on
Western Refining, Inc.
) shares based on a slew of positive developments, along with
company initiatives to improve reliability and reduce operating
costs. The decision to double the dividend payout and the
announcement of a $200 million share buyback program make us
optimistic about the independent refiner/marketer.
Additionally, we believe Western Refining's strategic actions to
improve its performance and competitiveness in a cost-effective
manner will drive growth in the company's profits and boost its
stock valuation. Western Refining's strong retail and wholesale
operations, along with exposure to the profitable Southwest
refining assets, add to the positive sentiment.
As such, we rate Western Refining shares as an attractive
investment and continue to rate it as Outperform. Our $32 price
target 10.0X trailing twelve-month cash flow reflects this view.
WESTERN REFING (WNR): Free Stock Analysis
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