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Wednesday, Sep 11
Western Refining, Tesoro best positioned among refiners, CS says
- Credit Suisse is concerned that 2013 Q4 and 2014 EPS estimates are too high for the refiners group, but the firm thinks Western Refining (WNR) and Tesoro (TSO) are best equipped to weather the storm.
- CS lowers TSO's earnings power on more conservative West Coast cracks, but thinks shares still look undervalued in absolute and relative terms.
- The firm raises Valero's (VLO) earnings, seeing Q3 as an important test as capture rates should bounce back; otherwise investors will worry that the Q2 weakness was structural.
- Deutsche Bank also says it's too soon to buy the group.