Goldman analyst Neil Mehta expects West Coast inventories to remain relative balanced through 2017 despite the re-start of the Torrance refinery expected later this month due to strong export trends and demand levels. Mehta views Tesoro's risk/reward as attractive at current levels given the underappreciated value in its non-refining business segments, the completion of the Western Refining acquisition which will expand a Permian logistics network, provide access to Phoenix retail, and improves margins at the Mid-Continent refining segment, and capital allocation opportunities. The analyst reiterates his Conviction Buy and $121 price target on Tesoro shares.