The Goldman Sachs Group Forecasts Strong Price Appreciation for Valero Energy (NYSE:VLO) Stock

Key Points

• Goldman Sachs raised its price target on Valero from $203 to $237 and maintained a "buy" rating, though that target implies roughly a 1.17% downside from the current share price.
• Valero beat expectations for the quarter with EPS of $3.82 (vs. $3.27 est.) and revenue of $30.37B (vs. $28.20B), and the stock jumped to about $239.81, near its 52‑week high.
• Analysts’ consensus is a Moderate Buy with an average price target of $193.20; the company trades at a P/E of 31.34 and has a market cap around $71.7B.

Valero Energy (NYSE:VLO - Get Free Report) had its price target hoisted by equities researchers at The Goldman Sachs Group from $203.00 to $237.00 in a report issued on Thursday,Benzinga reports. The firm presently has a "buy" rating on the oil and gas company's stock. The Goldman Sachs Group's price target indicates a potential downside of 1.17% from the stock's current price.

Several other equities research analysts have also issued reports on VLO. Mizuho reiterated a "neutral" rating and set a $192.00 price target (up from $190.00) on shares of Valero Energy in a report on Friday, December 12th. Bank of America reiterated a "neutral" rating and issued a $195.00 target price (down from $198.00) on shares of Valero Energy in a research note on Thursday, December 11th. Argus raised shares of Valero Energy to a "hold" rating in a research report on Monday, February 2nd. UBS Group restated a "buy" rating on shares of Valero Energy in a report on Tuesday, January 6th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Valero Energy from $197.00 to $200.00 and gave the company an "overweight" rating in a research note on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $193.20.

Valero Energy Stock Up 3.8%

VLO traded up $8.76 on Thursday, reaching $239.81. 3,162,676 shares of the company traded hands, compared to its average volume of 3,611,625. The company has a market cap of $71.71 billion, a price-to-earnings ratio of 31.34, a PEG ratio of 1.11 and a beta of 0.70. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.64 and a quick ratio of 1.11. The stock's 50 day moving average price is $195.07 and its 200-day moving average price is $176.62. Valero Energy has a 52-week low of $99.00 and a 52-week high of $239.55.

Valero Energy (NYSE:VLO - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The oil and gas company reported $3.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.27 by $0.55. The business had revenue of $30.37 billion during the quarter, compared to analyst estimates of $28.20 billion. Valero Energy had a return on equity of 12.35% and a net margin of 1.91%.Valero Energy's quarterly revenue was down 1.2% compared to the same quarter last year. During the same period last year, the company earned $0.64 earnings per share. On average, sell-side analysts expect that Valero Energy will post 7.92 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Highline Wealth Partners LLC increased its holdings in Valero Energy by 70.2% in the 3rd quarter. Highline Wealth Partners LLC now owns 160 shares of the oil and gas company's stock valued at $27,000 after buying an additional 66 shares during the period. JPL Wealth Management LLC bought a new position in shares of Valero Energy during the 3rd quarter worth about $27,000. Torren Management LLC acquired a new stake in shares of Valero Energy during the 4th quarter valued at about $30,000. AXS Investments LLC bought a new stake in Valero Energy in the fourth quarter valued at about $32,000. Finally, University of Texas Texas AM Investment Management Co. raised its position in Valero Energy by 157.0% in the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 203 shares of the oil and gas company's stock worth $33,000 after purchasing an additional 124 shares in the last quarter. Institutional investors and hedge funds own 78.69% of the company's stock.

Valero Energy Company Profile

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company's operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.

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