NEW YORK (TheStreet) -- Citigroup upgraded Western Refining (WNR) to "buy" from "neutral" and set a $55 price target. The firm said potential restructuring leads to increased free cash flow and growth.
The stock was up 1.48% to $40.38 shortly after the market opened on Monday.
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Separately, TheStreet Ratings team rates WESTERN REFINING INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WESTERN REFINING INC (WNR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, good cash flow from operations, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WNR's very impressive revenue growth greatly exceeded the industry average of 3.2%. Since the same quarter one year prior, revenues leaped by 70.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 46.32% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, WNR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income increased by 2.2% when compared to the same quarter one year prior, going from $83.72 million to $85.55 million.
- Net operating cash flow has significantly increased by 279.69% to $64.03 million when compared to the same quarter last year. In addition, WESTERN REFINING INC has also vastly surpassed the industry average cash flow growth rate of 17.65%.
- You can view the full analysis from the report here: WNR Ratings Report