- Refiners have outperformed while most energy peers have struggled lately, and the Cowen energy analyst team is keeping a positive view on the refining sector due to solid underlying earnings potential and the developing theme of logistics growth.
- Cowen likes Tesoro (TSO) for the possibility for meaningful EBITDA growth driven by the Carson refinery acquired earlier this year and eventually through TSO’s Port of Vancouver crude logistics project, and sees Valero (NYSE:VLO) as well positioned to benefit from the ongoing infrastructure debottlenecking of inland crude oil supply in 2014 and beyond.
- The firm also sees 30%-40% stock price upside for Outperform-rated Delek US Holdings (NYSE:DK), Marathon Petroleum (NYSE:MPC), Western Refining (NYSE:WNR) and PBF Energy (NYSE:PBF).