Valero Energy (NYSE:VLO) Price Target Raised to $355.00

Key Points

• UBS raised Valero Energy’s price target to $355 from $280 and maintained a “buy” rating, implying approximately 13.5% upside from the reported share price of $312.89.
• Valero delivered a strong second quarter, reporting adjusted EPS of $12.54 versus the $10.13 consensus and revenue of $44.48 billion, up 48.8% year over year. Higher refining margins, fuel demand, exports and lower-cost feedstocks drove the results.
• Analyst sentiment remains positive, with MarketBeat reporting a “Moderate Buy” consensus and an average target of $277.47, though the stock’s rally leaves less upside to some targets and the renewables business faces biofuel-import and tax-credit challenges.

Valero Energy (NYSE:VLO - Get Free Report) had its price target boosted by investment analysts at UBS Group from $280.00 to $355.00 in a report released on Friday,Benzinga reports. The firm currently has a "buy" rating on the oil and gas company's stock. UBS Group's target price points to a potential upside of 13.46% from the stock's current price.

VLO has been the topic of several other reports. Scotiabank lifted their price target on Valero Energy from $178.00 to $226.00 and gave the company a "sector outperform" rating in a research report on Wednesday, April 22nd. Zacks Research lowered Valero Energy from a "strong-buy" rating to a "hold" rating in a report on Monday, June 22nd. Wall Street Zen raised Valero Energy from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 4th. Weiss Ratings raised Valero Energy from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, July 23rd. Finally, Mizuho boosted their price target on shares of Valero Energy from $222.00 to $289.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Valero Energy currently has a consensus rating of "Moderate Buy" and a consensus target price of $277.47.

Valero Energy Price Performance

Shares of Valero Energy stock traded up $1.18 on Friday, hitting $312.89. The company had a trading volume of 2,431,025 shares, compared to its average volume of 3,424,155. Valero Energy has a 52 week low of $130.78 and a 52 week high of $320.24. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.58 and a quick ratio of 1.15. The company has a market cap of $92.91 billion, a PE ratio of 22.74, a PEG ratio of 0.19 and a beta of 0.55. The business has a 50-day simple moving average of $269.31 and a 200-day simple moving average of $238.16.

Valero Energy (NYSE:VLO - Get Free Report) last announced its earnings results on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, topping the consensus estimate of $10.13 by $2.41. The firm had revenue of $44.48 billion for the quarter, compared to analysts' expectations of $39.47 billion. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.The firm's quarterly revenue was up 48.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $2.28 earnings per share. Research analysts expect that Valero Energy will post 36.64 EPS for the current fiscal year.

Insider Activity at Valero Energy

In other news, SVP Eric A. Fisher sold 7,500 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the sale, the senior vice president directly owned 19,742 shares of the company's stock, valued at $5,294,212.14. This represents a 27.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.36% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Valero Energy

A number of institutional investors have recently bought and sold shares of VLO. Whipplewood Advisors LLC lifted its position in shares of Valero Energy by 3,400.0% in the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company's stock valued at $26,000 after acquiring an additional 102 shares in the last quarter. Financial Life Planners purchased a new position in Valero Energy during the 1st quarter worth approximately $28,000. Valued Wealth Advisors LLC grew its position in Valero Energy by 134.0% during the 1st quarter. Valued Wealth Advisors LLC now owns 117 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 67 shares in the last quarter. Global Assets Advisory LLC purchased a new stake in shares of Valero Energy in the first quarter valued at $33,000. Finally, JPL Wealth Management LLC purchased a new stake in shares of Valero Energy in the third quarter valued at $27,000. Hedge funds and other institutional investors 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: Record earnings significantly exceeded expectations. Valero reported second-quarter net income of $3.7 billion, or $12.62 per share, versus $714 million, or $2.28 per share, a year earlier. Adjusted EPS of $12.54 surpassed consensus estimates near $9.87-$10.13, while revenue rose 48.8% to $44.48 billion. Valero Energy beats quarterly profit estimates on higher refining margins
• Positive Sentiment: Refining conditions were particularly favorable. Higher refining margins, sturdy fuel demand and increased U.S. fuel exports—partly supported by heightened Middle East tensions—boosted profitability. Lower-cost Venezuelan feedstocks also aided results. Valero posts highest-ever Q2 profit
• Positive Sentiment: Renewables and capital discipline added support. Gains in renewable diesel and ethanol contributed to stronger profits and cash flow, while management emphasized disciplined capital allocation and ongoing shareholder returns. VLO Q2 Earnings Call Highlights Refining Strength
• Positive Sentiment: Analysts raised their outlooks. Wells Fargo increased its price target from $292 to $356 and retained an “overweight” rating. Barclays lifted its target from $279 to $323 and also rated the stock “overweight,” reinforcing the positive reaction to the earnings report.
• Positive Sentiment: The dividend remains a key attraction. Valero reaffirmed its $1.20-per-share quarterly dividend, payable August 31 to shareholders of record July 31, supporting the investment case based on cash returns. Valero Energy Corp's Dividend Analysis
• Neutral Sentiment: Valero’s strong quarter improves its value profile, but the stock’s rally leaves less upside to some analyst targets and increases sensitivity to future refining-margin normalization.
• Negative Sentiment: Management said tax-credit changes and registration hurdles have slowed biofuel imports, creating challenges for renewable-fuel compliance and potentially limiting near-term benefits in the company’s renewables business. Tax-credit overhaul slows biofuel imports

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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