Simmons Remains Sidelined on Valero Energy (VLO) - PT to $63

Simmons maintained a Neutral rating on Valero Energy (NYSE: VLO), and cut the price target to $63.00 (from $66.00), following the company's 1Q report. Current margin indicators appear below what is implied by consensus expectations for 2Q’16 in Simmons' view, with the $10/bbl increase in oil prices during April ’16 negatively impacting margin capture rates so far this quarter.

Analyst Jeff Dietert commented, "VLO reviewed its focus on growing earnings per share, with emphasis on safe reliable low-cost operations, continued execution of high return organic growth projects, and its commitment to return 75% of net income to shareholders through dividends and share repurchases in 2016, as well as considering synergistic and accretive acquisitions. VLO’s stout balance sheet (net D/TC = 20%, TD/EBITDA 1.1x) creates substantial flexibility for the company’s growth options."

For an analyst ratings summary and ratings history on Valero Energy click here. For more ratings news on Valero Energy click here.

Shares of Valero Energy closed at $57.63 yesterday.

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