Kirby: Buy Rated on Upside Optionality From Potential Venezuelan Heavy Crude Flow Shifts

In a report released today, Ben Mohr from Citi maintained a Buy rating on Kirby, with a price target of $145.00.

Ben Mohr has given his Buy rating due to a combination of factors tied to Kirby’s exposure to potential shifts in Venezuelan oil flows. He believes Kirby stands to gain incrementally if more Venezuelan heavy crude is redirected from China to the United States, or if overall heavy production out of Venezuela grows over time. In that scenario, Venezuelan barrels could replace other heavy imports such as Canadian crude and even some U.S. light crude, which would support higher volumes for Kirby in transporting crude, diluents, and refined products. In addition, Kirby is positioned to benefit from increased movements of key diluents like naphtha that are necessary to handle Venezuela’s viscous heavy crude.

Mohr acknowledges that some investors view the Venezuela opportunity as limited in the near term given current production levels, the emphasis on reviving lighter crude output, and the long lead times and policy uncertainty around refinery and upstream investments. However, he frames the Venezuela dynamic as valuable upside optionality rather than the sole driver of the thesis. Reflecting this improved risk/reward, he raises his price target to $145, applying a higher earnings multiple to 2026 estimates to capture the potential benefit from increased Venezuelan heavy crude and related product flows. With a projected total return of over 15%, he concludes that the stock’s prospective upside justifies a Buy rating.

In another report released yesterday, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $143.00 price target.