Barclays Maintains an 'Overweight' on Valero Energy (VLO); Adjusting Estimates for Toys and JCP
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Price: $341.67 -0.36%
Rating Summary:
16 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 15 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on Valero Energy (NYSE: VLO) price target of $95.00.
Barclays analyst says, "Toys R Us - 2Q Results: VNO owns 32.7% of the retail chain Toys R Us, which follows a January 31 fiscal year. As such, VNO recognizes each quarter's results with a lag; VNO's 3Q11 earnings will include the 2Q11 Toys results. Last week, VNO announced that it will recognize FFO of $2.3m ($0.01ps) related to Toys. Our estimates called for FFO of $7.4m ($0.04ps)....Non-Cash Charge Related to JC Penney (NYSE: JCP) Derivative Position Expected: VNO owns an economic interest in 23.4 million shares of JC Penney (JCP), amounting to a $627 million position at 9/30/11 (9.9% of outstanding JCP shares); of that amount, 4.8 million shares (21% of the position) is structured as a forward contract. We estimate VNO will recognize a $37 million mark-to-market charge ($0.18ps) on its JCP forward contract, resulting from JCP's 22% price decline during the third quarter (vs. -11% for the S&P 500)."
"Lowering 3Q and FY 2011 FFO Estimates: To reflect these results, we are decreasing our 3Q11 FFOps estimate to $1.04 from $1.23 and our FY 2011 FFOps estimate to $6.08 from $6.27."
For more ratings news on Valero Energy click here and for the rating history of Valero Energy click here.
Shares of Valero Energy closed at $22.24 yesterday.
Barclays analyst says, "Toys R Us - 2Q Results: VNO owns 32.7% of the retail chain Toys R Us, which follows a January 31 fiscal year. As such, VNO recognizes each quarter's results with a lag; VNO's 3Q11 earnings will include the 2Q11 Toys results. Last week, VNO announced that it will recognize FFO of $2.3m ($0.01ps) related to Toys. Our estimates called for FFO of $7.4m ($0.04ps)....Non-Cash Charge Related to JC Penney (NYSE: JCP) Derivative Position Expected: VNO owns an economic interest in 23.4 million shares of JC Penney (JCP), amounting to a $627 million position at 9/30/11 (9.9% of outstanding JCP shares); of that amount, 4.8 million shares (21% of the position) is structured as a forward contract. We estimate VNO will recognize a $37 million mark-to-market charge ($0.18ps) on its JCP forward contract, resulting from JCP's 22% price decline during the third quarter (vs. -11% for the S&P 500)."
"Lowering 3Q and FY 2011 FFO Estimates: To reflect these results, we are decreasing our 3Q11 FFOps estimate to $1.04 from $1.23 and our FY 2011 FFOps estimate to $6.08 from $6.27."
For more ratings news on Valero Energy click here and for the rating history of Valero Energy click here.
Shares of Valero Energy closed at $22.24 yesterday.
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