Joe Laetsch, an analyst from Morgan Stanley, maintained the Hold rating on Valero Energy. The associated price target remains the same with $175.00.
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Joe Laetsch has given his Hold rating due to a combination of factors that include Valero Energy’s recent financial performance and market conditions. The company’s third-quarter earnings per share of $3.66 surpassed both the consensus estimate of $3.05 and Morgan Stanley’s estimate of $3.10, driven by strong refining margins and record throughput in key regions like the Gulf Coast and North Atlantic. Additionally, improvements in renewable diesel and ethanol operations contributed positively to the results.
Despite these strong financial outcomes, Laetsch maintains a Hold rating as the future outlook presents a balanced risk-reward scenario. While the refining fundamentals are expected to remain supported by low inventories and a tightening market balance, the potential for increased supply from OPEC+ and Canada could impact margins. The company’s performance year-to-date has been robust, but the rating reflects a cautious stance given the uncertainties in the market dynamics and the modest upside potential relative to more diversified peers.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $165.00 price target.