Valero Energy (VLO) PT Raised to $121 at Citi, Added to Citi's Focus List

May 3, 2021 5:10 AM EDT
Get Alerts VLO Hot Sheet
Price: $62.97 -4.01%

Rating Summary:
    22 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 15 | Down: 9 | New: 24
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Citi analyst Prashant Rao raised the price target on Valero Energy (NYSE: VLO) to $121.00 (from $95.00) while maintaining a Buy rating.

The analyst comments "Valero’s recently announced large-scale carbon capture & storage (“CCS”) project is the third major project in its portfolio aimed at global Net Zero Carbon targets, and the second announced YTD. We believe the company is in the early stages of a meaningful and underappreciated business transformation that should add $1.8B in growth-oriented low-carbon annual CFs by end-2024 from projects with higher rates of return than peers’, and none of it in market/consensus expectations. The portfolio shifts from 12% to 35% low-carbon on CFs and >50% on DCF valuation – justifying multiple expansion from 6.0x to 7.5x EBITDA. We raise our TP to $121 and add VLO to Citi’s Focus List."

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