Roger Read, an analyst from Wells Fargo, maintained the Buy rating on Valero Energy. The associated price target was raised to $168.00.
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Roger Read has given his Buy rating due to a combination of factors, including the anticipated improvements in Valero Energy’s refining and renewable diesel segments. The decision to raise the price target to $168 is supported by higher expected multiples for these segments, reflecting the company’s strong performance and market conditions.
Read’s analysis highlights the strength in diesel cracks and the increased visibility on wider crude differentials, driven by OPEC+’s consistent volume increases. Additionally, the renewable diesel market is perceived to have bottomed, prompting an increase in the RD multiple. These factors, combined with stable ethanol estimates, contribute to the positive outlook for Valero Energy’s stock.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $166.00 price target.