Valero’s analyst recommendations
Earlier in this series, we reviewed Valero’s 4Q15 earnings, refining margin trend, stock performance, recent moves, and capital expenditure plans. In this part, we’ll examine the ratings of analysts covering the stock.
The above table shows that ten of the 13 firms there have rated Valero Energy Corporation (VLO) as “buy,” “overweight,” or “outperform.” The highest 12-month price target for VLO stands at $93, indicating a 44% gain from current levels. The remaining three firms have rated Valero as “hold.” The average 12-month price target for VLO stands at $79, indicating a 22% 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 $70, implying a 9% gain from current levels.
The highest price target for Valero is set by Barclays, whereas the lowest price target is specified by Cowen. Firms like Barclays, Goldman Sachs, Credit Suisse, and Wolfe Research have positive recommendations for the stock. They have given price targets equal to $80 per share or above. On the other hand, firms like Morningstar, Edward Jones, and Simmons and Company International have given “neutral” or “hold” recommendations to the stock.
VLO and peers: Analyst ratings
Valero Energy’s (VLO) peers Marathon Petroleum (MPC), Tesoro (TSO), and Phillips 66 (PSX) have been rated as “buy” by 89%, 47%, and 53% of the analysts’ surveyed, respectively. If you’re looking for exposure to refining sector stocks, you can consider the iShares US Oil & Gas Exploration & Production ETF (IEO). The ETF has a combined exposure of ~24% to MPC, VLO, TSO, and PSX.