Deutsche Bank Upgrades Valero Energy Corp. to Buy (VLO)

LIGHTNING RELEASES (12/14/2013) - Valero Energy Corp. (NYSE:VLO) was upgraded by equities research analysts at Deutsche Bank from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, Analyst Ratings Network reports. The firm currently has a $55.00 price objective on the stock, up from their previous price objective of $42.00. Deutsche Bank’s price objective would indicate a potential upside of 18.33% from the stock’s previous close.
The analysts wrote, “Since our ‘Diamond Age’ (Oct 2010) refining upgrade, & subsequent ‘Future of US Oil’ series, broadly speaking our roadmap of market development has been followed, but faster than we anticipated. First phase, the stunning production growth in natural gas and light sweet oil, giving US refiners a huge competitive advantage and oil product export growth. That is a long-term secular bull story. The second, interim phase of infrastructure bottlenecks and de-bottlenecking added super-super normal profit and volatility. We are in the third phase, of outright over-supply of light sweet crude & the limitation of the crude export ban. Target $30/bbl Brent-WTI. Upgrade PSX, VLO, DK, ALJ.”
Several other analysts have also recently commented on the stock. Analysts at Macquarie upgraded shares of Valero Energy Corp. from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, December 5th. They now have a $65.00 price target on the stock, up previously from $41.00. Separately, analysts at Bank of America Corp. reiterated a “buy” rating on shares of Valero Energy Corp. in a research note to investors on Tuesday, December 3rd. They now have a $59.00 price target on the stock, up previously from $45.00. Finally, analysts at Zacks reiterated a “neutral” rating on shares of Valero Energy Corp. in a research note to investors on Friday, November 29th. They now have a $48.00 price target on the stock. Six equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the stock. Valero Energy Corp. has a consensus rating of “Buy” and a consensus target price of $49.73.
Valero Energy Corp. (NYSE:VLO) traded down 2.04% during mid-day trading on Monday, hitting $45.53. 2,966,172 shares of the company’s stock traded hands. Valero Energy Corp. has a 1-year low of $29.3053 and a 1-year high of $47.98. The stock’s 50-day moving average is $42.62 and its 200-day moving average is $37.69. The company has a market cap of $24.566 billion and a P/E ratio of 10.47.
Valero Energy Corp. (NYSE:VLO) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $0.44 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.41 by $0.03. The company had revenue of $36.14 billion for the quarter, compared to the consensus estimate of $29.76 billion. During the same quarter in the prior year, the company posted $1.91 earnings per share. The company’s quarterly revenue was up 4.1% on a year-over-year basis. On average, analysts predict that Valero Energy Corp. will post $3.27 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, December 18th. Shareholders of record on Wednesday, November 27th will be given a dividend of 0.225 per share. This represents a $0.90 dividend on an annualized basis and a yield of 1.94%. The ex-dividend date of this dividend is Monday, November 25th.