Valero Energy (NYSE:VLO) Given New $490.00 Price Target at Citigroup

Key Points

• Citigroup raised Valero Energy’s price target to $490 from $485 while maintaining a neutral rating, implying 16.81% potential upside from the reported $419.47 share price.
• Valero delivered a strong quarter, reporting $23.90 in EPS versus the $21.17 consensus estimate and $46.1 billion in revenue, up 43.3% year over year.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and $386.44 target, although refining’s cyclical nature and the stock’s recent gains remain key risks.

Valero Energy (NYSE:VLO - Get Free Report) had its price objective increased by investment analysts at Citigroup from $485.00 to $490.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the oil and gas company's stock. Citigroup's price target would indicate a potential upside of 16.81% from the company's current price.

VLO has been the topic of several other research reports. Zacks Research raised Valero Energy from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 4th. Morgan Stanley increased their price objective on Valero Energy from $255.00 to $411.00 and gave the stock an "equal weight" rating in a research note on Monday, September 14th. Mizuho lifted their price objective on Valero Energy from $300.00 to $434.00 and gave the company a "neutral" rating in a report on Thursday, October 8th. Jefferies Financial Group reduced their target price on shares of Valero Energy from $401.00 to $394.00 and set a "hold" rating on the stock in a research note on Thursday, October 8th. Finally, Erste Group Bank downgraded shares of Valero Energy from a "buy" rating to a "hold" rating in a research note on Thursday, August 27th. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Valero Energy currently has an average rating of "Moderate Buy" and a consensus target price of $386.44.

Valero Energy Price Performance

NYSE VLO traded down $6.81 on Friday, reaching $419.47. The company's stock had a trading volume of 1,739,419 shares, compared to its average volume of 3,291,968. The firm has a market cap of $120.78 billion, a PE ratio of 17.40, a price-to-earnings-growth ratio of 0.26 and a beta of 0.59. The business has a 50-day moving average price of $391.47 and a 200 day moving average price of $309.38. Valero Energy has a 52 week low of $159.90 and a 52 week high of $461.52. The company has a current ratio of 1.64, a quick ratio of 1.23 and a debt-to-equity ratio of 0.37.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The oil and gas company reported $23.90 EPS for the quarter, topping analysts' consensus estimates of $21.17 by $2.73. The firm had revenue of $46.10 billion during the quarter, compared to analysts' expectations of $42.71 billion. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The company's revenue for the quarter was up 43.3% compared to the same quarter last year. During the same quarter last year, the company earned $3.66 earnings per share. Sell-side analysts expect that Valero Energy will post 52.55 EPS for the current year.

Institutional Investors Weigh In On Valero Energy

Large investors have recently bought and sold shares of the business. Moore Capital Management LP bought a new stake in Valero Energy during the 2nd quarter worth about $13,193,000. Fort Washington Investment Advisors Inc. OH raised its stake in shares of Valero Energy by 4.2% in the first quarter. Fort Washington Investment Advisors Inc. OH now owns 192,430 shares of the oil and gas company's stock worth $47,546,000 after acquiring an additional 7,702 shares during the last quarter. QRG Capital Management Inc. raised its stake in shares of Valero Energy by 5.5% in the second quarter. QRG Capital Management Inc. now owns 58,558 shares of the oil and gas company's stock worth $15,251,000 after acquiring an additional 3,037 shares during the last quarter. Jennison Associates LLC lifted its position in shares of Valero Energy by 377.1% during the first quarter. Jennison Associates LLC now owns 413,437 shares of the oil and gas company's stock worth $102,152,000 after purchasing an additional 326,777 shares in the last quarter. Finally, Journey Advisory Group LLC lifted its position in shares of Valero Energy by 23.3% during the first quarter. Journey Advisory Group LLC now owns 21,676 shares of the oil and gas company's stock worth $5,356,000 after purchasing an additional 4,098 shares in the last quarter. 78.69% of the stock is currently owned by institutional investors.

Valero Energy News Summary

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Exceptional Q3 results: Valero reported adjusted EPS of $23.90, well above the roughly $21.17 analyst consensus, while revenue rose 43.3% year over year to $46.1 billion. Net income reached approximately $6.8 billion, compared with $1.1 billion a year earlier, as refining margins nearly tripled. Valero Energy Reports Third Quarter 2026 Results
• Positive Sentiment: Strong operating backdrop: Tight fuel inventories, resilient demand, higher crude and fuel prices, record ethanol production, and improved renewable-diesel and ethanol results supported profitability. Management also highlighted $9.8 billion of cash and disciplined capital spending. Valero Q3 Earnings Call Highlights Refining and Cash Strength
• Positive Sentiment: Analyst support: Barclays raised its price target to $443 and Wells Fargo lifted its target to $489; both maintained overweight ratings. Zacks also characterized VLO as a buy-rated stock with record-breaking results. 3 Buy-Rated Stocks Breaking Quarterly Records
• Neutral Sentiment: Industry comparison: Valero and Phillips 66 both benefit from strong refining margins, but differences in crude sourcing, diversification, and valuation may influence which refiner investors prefer. VLO vs. PSX
• Negative Sentiment: Expectations and cyclicality remain risks: After reaching a 52-week high near $462, VLO may face profit-taking. Refining earnings are highly cyclical, and elevated crude prices or weaker margins could reduce the sustainability of the current earnings surge. TD Cowen raised its target to $400 but retained a hold rating, below the recent trading level.

About Valero Energy

Valero Energy Corporation is an international energy company headquartered in San Antonio, Texas. The company's primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.

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