Where Do VLO’s Analyst Ratings Stand after 2Q17?

Analyst ratings for VLO

So far in this series, we’ve compared Valero Energy’s (VLO) 2Q17 earnings with estimates and analyzed its 2Q17 refining margin trend. We’ve also discussed VLO’s stock performance after its 2Q17 results came out on July 27, 2017. Now let’s look at the latest analyst ratings for VLO.

Where Do VLO’s Analyst Ratings Stand after 2Q17?

After its 2Q17 earnings release, Valero has been rated by a total of 21 analysts. Of that total, 12 (57%) analysts have assigned a “buy” or “strong buy” ratings, while nine (43%) have assigned “hold” ratings. No one has assigned “sell” or “strong sell” rating on the stock.

VLO’s mean target price of $73 per share implies a 7% gain from the current level.

As Wall Street analysts go deeper into the 2Q17 numbers, VLO might see changes in its ratings or target prices. Even before the earnings release, Valero saw an upgrade and boosts to its target prices.

Recently, Jefferies upgraded Valero from a “hold” to a “buy.” The firm has raised Valero’s target price from $65 per share to $80 per share. J.P. Morgan has also raised the stock’s target price from $69 per share to $71 per share.

Analyst ratings for other refiners

Peers HollyFrontier (HFC), Delek US Holdings (DK), and Tesoro (TSO) have been rated as a “buy” by 24%, 20%, and 85% of analysts, respectively. Downstream peers PBF Energy (PBF) and Phillips 66 (PSX) have been rated as “buy” by 35% and 32% of analysts, respectively.

In the next and final part of this series, we’ll examine the changes in the implied volatility in VLO stock.