Valero Energy: Analysts’ Recommendations

In this series, we have discussed Valero Energy’s (VLO) refining margin performance in the fourth quarter. We also discussed Valero Energy’s stock performance after its earnings release on January 31. Now, we’ll discuss analysts’ ratings for Valero Energy.

Since Valero Energy’s earnings, it has been rated by 19 analysts. Among the analysts, 13 (or 68%) recommended a “buy” or “strong buy,” while six (or 37%) recommended a “hold.” None of the analysts recommended a “sell” or “strong sell” rating on the stock.

Valero Energy’s mean target price of $107 per share represents a 22% gain from the current level. After the fourth-quarter earnings, RBC raised its target price on Valero Energy from $95 to $99. In the pre-earnings trend in January, most analysts cut their target prices on the stock.

Most analysts continue to rate Valero Energy as a “buy” due to its better-than-expected fourth-quarter earnings. Valero Energy’s growth activities are continuing according to the schedule, which we discussed in the previous part. Analysts expect Valero Energy’s earnings growth to accelerate next year. The company’s earnings are expected to rise 8% in 2019 and 42% in 2020.

HollyFrontier (HFC) and Delek US Holdings (DK) have been rated as a “buy” by 29% and 56% of the analysts, respectively. PBF Energy (PBF), Marathon Petroleum (MPC), and Phillips 66 (PSX) have been rated as a “buy” by 53%, 100%, and 58% of the analysts, respectively.

Next, we’ll discuss the changes in Valero Energy’s implied volatility after its fourth-quarter earnings. We’ll also discuss Valero Energy’s stock price forecast range for the next eight days after its fourth-quarter earnings.