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Bull of the Day

We are maintaining our Outperform recommendation on Western Refining, Inc. (WNR) shares based on a slew of positive developments, along with company initiatives to improve reliability and reduce operating costs. The decision to double the dividend payout and the announcement of a $200 million share buyback program make us optimistic about the independent refiner/marketer.

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 rate Western Refining shares as an attractive investment and continue to rate it as Outperform. Our $32 price target 10.0X trailing twelve-month cash flow reflects this view.

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