Oppenheimer Raises PT on Valero Energy (VLO) to $55

Oppenheimer raised is price target on Outperform-rated Valero Energy (NYSE: VLO) from $40 to $55 following strong Q4 results and a boosted buyback and dividend.

"We are raising our 12-18-month PT for VLO to $55 from $40 to reflect continued strong industry fundamentals of wide crude discounts, cheap natural gas, declining regulatory spending and growing refined product exports," analyst Fadel Gheit states. "Further improvement in industry conditions could boost earnings, cash flow and valuation. The completion of two major hydrocracker projects could reduce CAPEX by $1B and generate $1.1B of EBITDA annually. VLO intends to use the bulk of its free cash flow to repurchase shares and grow dividends, which should boost its valuation. Our new estimates reflect current guidance and commodity prices."

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 $43.77 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Nomura/Instinet Upgrades SK Innovation Co Ltd (096770:KS) to Neutral
• Citi upgrades AMD to buy with $575 price target ahead of Q4 earnings
• Adobe (ADBE) PT Lowered to $245 at Mizuho