Valero Energy (VLO) Setup is the Best in Years, PT Raised to $107 at BofA Securities

BofA Securities analyst Doug Leggate raised the price target on Valero Energy (NYSE: VLO) to $107.00 (from $102.00) after the company reported results and offered an outlook for 2022 that has earnings above mid cycle levels.

The analyst maintained a Buy rating, stating "we see the set-up for refiners as the best it’s been in years. Near-term, the outlook is underpinned by lean global product stocks, and a need to reset the supply buffer for an expected demand recovery. Per Valero Energy (VLO), US gasoline demand is fully back, diesel is higher, and jet fuel’s 3mmbpd demand gap expected to narrow on a travel recovery. Combined with the regional advantage from low cost natural gas vs international peers, tailwinds from net refinery closures that accelerated during the pandemic and the unwind of OPEC+ cuts that can widen light heavy spreads VLO stands as perhaps best placed ‘pure play’ to benefit from a return to at least mid-cycle margins."

You May Also Be Interested In

• Jack In The Box (JACK) PT Lowered to $80 at Stifel
• Osisko Gold Royalties Ltd (OR:CN) (OR) PT Lowered to Cdn$22 at Stifel Canada
• AltaGas Ltd. (ALA:CN) (ATGFF) PT Raised to Cdn$33 at National Bank Financial