We are upgrading Western Refining, Inc. (WNR) shares to Outperform from Neutral, based on favorable trends in the refining industry along with company initiatives to improve reliability and reduce operating costs. An uptick in economic activity overseas and prospects for stronger fuel demand in the domestic market make us optimistic about the sector.
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 believe Western Refining is well positioned going forward and view it as an attractive investment. Our $18 price target, 13.3X trailing twelve-month cash flow, reflects this view.
WESTERN REFING (WNR): Free Stock Analysis Report
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