Barclays (NYSE:BCS) kept its "Overweight" rating on Sunoco (NYSE:SUN), with a price target of $45.
"We think the market will view SUN's 2Q10 result favorably. Excluding special items, SUN reported a 2Q10 EPS of $1.31/share, compared to our forecast of $0.86/share and consensus estimate of $0.77/share. Echoing the rest of its peers, the beat came in refining, where margins were much stronger than expected," said Barclays.
"We raise our 2010 and 2011 EPS estimates for SUN to $1.95 and $2.30 per share from $1.15 and $1.70 per share, respectively."
The oil and gas industry continues to show great results for the quarter, many handily beating analysts' estimates.
This wasn't a surprise based on higher prices, and the refining margins weren't completely unexpected either, but led most oil companies to larger-than-expected profits.
The same happened with Sunoco.
Sunoco closed Friday at $35.67, a gain of $1.38, or 4.02 percent.
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