Barclays Maintains an 'Overweight' on Valero Energy (VLO); 3Q11 Preview: Expect $1.95

Barclays maintains an 'Overweight' on Valero Energy (NYSE: VLO) price target of $35.00.

Barclays analyst says, "We fine-tune our 4Q11, 2011, and 2012 estimates to reflect mark-to-market on our commodity price deck...We expect VLO to report 3Q11 EPS of $1.95, compared to consensus expectations of $1.94. Our 3Q11 estimate does not include any inventory or hedging gains/losses."

"However, our 3Q11 estimate includes their recent acquisition of the UK R&M
operation from Chevron as well as the recently completed Meraux refining
acquisition starting 4Q11. Finally, management preannounced 3Q11 earnings
exceeding $2.00 per share at the Barclays Capital CEO Energy Conference in early September. We expect results to come in lower than management's guidance. We expect refining to report a profit of $1,846 million, compared to $1,290 million in 2Q11 and $574 million in 3Q10."

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 $26.70 yesterday.

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