Oil Refiner Tesoro Corp. Upgraded To Overweight From Equal Weight At Morgan Stanley

By Caitlin HustonMarketsMarketWatch Pulse

Tesoro Corp. was upgraded to overweight from equal weight Tuesday at Morgan Stanley. The analysts pointed to several catalysts for the oil refiner, including its acquisition of Western Refining Inc., which they expect will diversify the company's growth opportunities. Additionally, they expect Tesoro to outperform in its next earnings report and boost its stock price with a planned share buyback strategy in the second half of the year. With all of these catalysts, the analysts believe Tesoro's valuation is largely in line with its peers. The analysts also raised their price target to $110 from $100. Shares of Tesoro have gained 4.5% month-to-date,while the S&P 500 has gained 1.1%.

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