Scotiabank Sticks to Its Buy Rating for Tesoro Corp

By Ryan Adsit

Scotiabank analyst Blake Fernandez maintained a Buy rating on Tesoro Corp (NYSE: TSO) yesterday and set a price target of $99. The company’s shares closed yesterday at $89.43, close to its 52-week high of $93.06.

According to, Fernandez is a 1-star analyst with an average return of -0.2% and a 44.1% success rate. Fernandez covers the Basic Materials sector, focusing on stocks such as Royal Dutch Shell A, Hollyfrontier Corp, and Valero Energy Corp.

Currently, the analyst consensus on Tesoro Corp is Moderate Buy and the average price target is $106.63, representing a 19.2% upside.

In a report issued on May 25, Piper Jaffray also resumed coverage with a Buy rating on the stock.

Based on Tesoro Corp’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $6.63 billion and quarterly net profit of $50 million. In comparison, last year the company earned revenue of $5.09 billion and had a net profit of $69 million.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TSO in relation to earlier this year. Most recently, in April 2017, Robert W. Goldman, a Director at TSO bought 6,000 shares for a total of $371,520.

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Tesoro Corp. engages in the refining and marketing of petroleum products. The company operates through the following segments: Refining, Logistics and Marketing. The Refining segment refines crude oil and other feed stocks into transportation fuels, such as gasoline and gasoline blend stocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas and petroleum coke for sale in bulk markets to a wide variety of customers within Tesoro’s markets. The Logistics segment includes crude oil and natural gas gathering assets, natural gas and natural gas liquid processing assets, and crude oil and refined products terminalling, transportation and storage assets acquired from Tesoro and third parties. The Marketing segment sells transportation fuels through branded and unbranded channels. Its brand portfolio includes ARCO, Shell, Exxon, Mobil, USA Gasoline, Rebel and Tesoro. Tesoro was founded by West V. Robert, Jr. in 1968 and is headquartered in San Antonio, TX.