Valero upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Neil Mehta upgraded Valero (VLO) to Buy from Neutral with a price target of $154, up from $127. The company’s consensus expectations are better reflecting the concerns about oil product demand and the impact of tighter crude differentials, the analyst tells investors in a research note. The firm expects Valero’s earnings per share to grow from around $7.50 this year to over $12.50 in 2027 through a combination of share repurchases, limited refining capacity additions and improving crude differentials from the return of OPEC+ supply. It cites the company’s improved margins, cash returns and “differentiated refining execution” for the upgrade.