UBS Maintains a 'Buy' on Valero Energy (VLO); Quietly Planning to Cash in on Retail

August 1, 2012 11:58 AM EDT Send to a Friend
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Price: $48.61 -4.57%

Rating Summary:
    18 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 3 | Down: 17 | New: 2
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UBS maintains a 'Buy' on Valero Energy (NYSE: VLO) price target of $31.00 (from $26.00).

Analyst, Craig Weiland, said, "Overshadowing strong 2Q results, VLO revealed it is considering a separation of its U.S. and Canadian retail segments from the remainder of the company. Clarity on what form the separation will take (i.e., tax free spin, IPO, straight sale) will likely occur in the next few months; however, VLO noted it is focused on identifying the most tax-efficient distributable form to shareholders. A private letter ruling from the IRS will be sought and management has placed a 6 month timeframe on the separation occurring—seemingly pegging a separation by 1Q13."

FY12 EPS estimate lowered from $3.98 to $3.91 and FY13 from $3.90 to $3.83.

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 $27.50 yesterday.


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