VLO's Investment Appeal: Analyst Raises Price Target, Citing Advantaged Cost And Positive Market Indicators
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Ryan M. Todd reiterated an Overweight rating on Valero Energy Corporation (VLO), raising the price target to $171 from $168. Despite a reduction in EPS/EBITDA estimates, Todd believes VLO's earnings power remains robust due to global capacity tightness, supportive demand, and an advantaged cost structure. Todd expects VLO to accelerate buyback pace in Q3 and sees it as an attractive investment option due to its inexpensive valuation. However, he revised Q3 EPS/EBITDA estimates lower due to net headwinds to refining capture and DGD margins.
October 03, 2023 | 6:32 pm
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Piper Sandler analyst raises VLO's price target to $171, citing robust earnings power and attractive valuation. However, Q3 EPS/EBITDA estimates revised lower due to refining capture and DGD margins headwinds.
The news is directly related to VLO and is likely to influence investor sentiment. The raised price target and positive comments about the company's earnings power and valuation are positive. However, the downward revision of Q3 EPS/EBITDA estimates due to refining capture and DGD margins headwinds could have a negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100