Valero Energy (NYSE:VLO) Price Target Cut to $394.00 by Analysts at Jefferies Financial Group

Key Points

• Jefferies cut Valero Energy’s price target to $394 from $401 and maintained a “hold” rating, implying roughly 11% downside from the reported share price.
• Despite Jefferies’ caution, the broader analyst consensus remains “Moderate Buy,” with an average target of $365.19; several firms recently raised their targets and ratings.
• Valero reported stronger-than-expected quarterly results, including $12.54 in EPS versus a $10.11 estimate and 48.8% year-over-year revenue growth, while institutional investors own 78.69% of its shares.

Valero Energy (NYSE:VLO - Get Free Report) had its target price cut by equities researchers at Jefferies Financial Group from $401.00 to $394.00 in a note issued to investors on Thursday, Benzinga reports. The firm currently has a "hold" rating on the oil and gas company's stock. Jefferies Financial Group's target price would suggest a potential downside of 11.19% from the company's current price.

VLO has been the subject of several other research reports. Piper Sandler raised their target price on shares of Valero Energy from $329.00 to $435.00 and gave the stock an "overweight" rating in a report on Thursday, September 3rd. Zacks Research raised Valero Energy from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 4th. The Goldman Sachs Group lifted their price objective on Valero Energy from $365.00 to $457.00 and gave the company a "buy" rating in a research note on Wednesday, September 23rd. Morgan Stanley boosted their price objective on Valero Energy from $255.00 to $411.00 and gave the company an "equal weight" rating in a report on Monday, September 14th. Finally, TD Cowen upped their target price on Valero Energy from $338.00 to $350.00 and gave the stock a "hold" rating in a research note on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Valero Energy currently has an average rating of "Moderate Buy" and a consensus target price of $365.19.

Valero Energy Stock Performance

VLO traded up $19.54 on Thursday, reaching $443.64. 2,563,147 shares of the stock were exchanged, compared to its average volume of 3,342,763. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.64 and a quick ratio of 1.23. The company's 50-day moving average price is $363.64 and its 200 day moving average price is $294.13. The firm has a market capitalization of $127.74 billion, a PE ratio of 18.41, a PEG ratio of 0.28 and a beta of 0.59. Valero Energy has a fifty-two week low of $155.29 and a fifty-two week high of $446.48.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The oil and gas company reported $12.54 earnings per share for the quarter, beating analysts' consensus estimates of $10.11 by $2.43. Valero Energy had a return on equity of 26.74% and a net margin of 5.17%.The business had revenue of $44.48 billion for the quarter, compared to analyst estimates of $39.47 billion. During the same period in the prior year, the company earned $2.28 earnings per share. The company's revenue was up 48.8% on a year-over-year basis. As a group, sell-side analysts forecast that Valero Energy will post 49.86 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of VLO. Bank of America Corp DE grew its holdings in shares of Valero Energy by 11.4% during the first quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company's stock worth $1,243,630,000 after buying an additional 516,975 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in Valero Energy by 9.4% in the 1st quarter. Bank of New York Mellon Corp now owns 2,969,320 shares of the oil and gas company's stock worth $733,660,000 after purchasing an additional 254,604 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Valero Energy by 18.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company's stock worth $702,285,000 after purchasing an additional 442,177 shares during the last quarter. Amundi boosted its stake in Valero Energy by 45.3% during the first quarter. Amundi now owns 2,584,976 shares of the oil and gas company's stock worth $638,695,000 after buying an additional 806,018 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Valero Energy by 33.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,058,341 shares of the oil and gas company's stock worth $536,074,000 after buying an additional 520,642 shares during the last quarter. Institutional investors and hedge funds own 78.69% of the company's stock.

Key Valero Energy News

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

• Positive Sentiment: Strong refining fundamentals support the rally. Valero’s heavy-crude processing advantage, robust crack spreads and resilient refining margins are viewed as supporting elevated earnings and cash generation, even with higher crude oil prices. Is it Worth Paying a Premium Price for Valero Energy Now?
• Positive Sentiment: Analysts see a favorable near-term earnings setup. BMO Capital maintained a Buy rating and set a $455 price target, citing strong refining margins, an attractive third-quarter earnings outlook and cash-generative capital allocation. Valero has also appeared on lists of stocks expected to beat quarterly earnings estimates. Valero Secures Buy Rating on Robust Refining Margins
• Positive Sentiment: Fuel-market policy changes may benefit refiners. Temporary permission to use dyed diesel on highways and a deferral of federal fuel taxes were reported alongside gains in Valero and other refining stocks, potentially supporting fuel demand and industry economics. VLO, MPC, SUN, PSX Stocks Climb Overnight
• Neutral Sentiment: Investor attention is elevated. Increased Zacks user interest and Valero’s inclusion in a Zacks Rank #1 growth-stock list may improve visibility, but these signals do not by themselves change the company’s fundamentals. Valero Energy Is Attracting Investor Attention
• Negative Sentiment: Valuation and normalization risks remain. Mizuho raised its price target to $434 but kept a Neutral rating, while other commentary argues that unusually strong profits may fade as geopolitical commodity shocks ease and crack spreads normalize. This could pressure future margins and returns after the recent surge. Valero’s Exceptional, Unwarranted Profitability Comes To An End

Valero Energy Company Profile

Valero Energy Corporation is an international petroleum refining, renewable fuels and marketing company headquartered in San Antonio, Texas. Founded in 1980, the company processes crude oil and other feedstocks into transportation fuels and other products used by commercial, industrial and consumer customers.

Valero's refined products include gasoline, diesel, jet fuel, asphalt, lubricants and petrochemical feedstocks. The company also produces and markets ethanol and renewable diesel, including through its Diamond Green Diesel joint venture with Darling Ingredients.

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