1Q16 Pre-Earnings Analysis of Oil Refiner Valero Energy Corp.
Valero’s analyst recommendations
In this series, we have examined Valero’s 1Q16 estimates, refining margin trend, stock performance, recent moves, and capex position ahead of its earnings release expected on May 3, 2016. In this part, we’ll examine the ratings of analysts covering the stock.
The above table shows that nine of the 13 firms rated Valero Energy Corporation (VLO) as a “buy,” “overweight,” or “outperform.” The highest 12-month price target for VLO stands at $82, indicating a 35% gain from current levels.
The remaining four firms have rated Valero as “hold.” The average 12-month price target for VLO stands at $72, indicating an 18% gain from current levels. None of the above firms have given a “sell” rating to Valero. VLO’s lowest 12-month price target stands at $65, implying a 7% gain from current levels.
The highest price target for Valero is set by Barclays whereas the lowest price target is specified by J.P. Morgan. Wolfe Research and Barclays have positive recommendations for the stock and have given price targets equal to or exceeding $80 per share for VLO.
On the other hand, Evercore ISI, Credit Suisse, Piper Jaffray, and Morningstar have given “neutral” or “hold” recommendations on the stock.
VLO’s peers’ analyst ratings
Valero Energy Corporation’s (VLO) peers HollyFrontier Corp (HFC), Alon USA Energy (ALJ), and Delek US Holdings (DK) have been rated as a “buy” by 35%, 9%, and 67% of analysts surveyed, respectively.
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