Breaking Down Valero Energy: 14 Analysts Share Their Views

Valero Energy Corporation +0.87%

Valero Energy Corporation




Providing a diverse range of perspectives from bullish to bearish, 14 analysts have published ratings on Valero Energy (NYSE:VLO) in the last three months.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 5 3 0 1
Last 30D 1 0 0 0 0
1M Ago 2 4 1 0 0
2M Ago 2 1 2 0 1
3M Ago 0 0 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $182.43, a high estimate of $210.00, and a low estimate of $161.00. This upward trend is apparent, with the current average reflecting a 15.2% increase from the previous average price target of $158.36.

price target chart

Interpreting Analyst Ratings: A Closer Look

The perception of Valero Energy by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jason Gabelman TD Cowen Lowers Buy $185.00 $190.00
Vikram Bagri Citigroup Raises Buy $192.00 $160.00
Paul Cheng Scotiabank Raises Sector Outperform $165.00 $138.00
Jason Gabelman TD Cowen Raises Buy $190.00 $175.00
Roger Read Wells Fargo Raises Equal-Weight $184.00 $171.00
Ryan Todd Piper Sandler Raises Overweight $198.00 $161.00
Theresa Chen Barclays Raises Overweight $179.00 $149.00
John Royall JP Morgan Raises Overweight $178.00 $177.00
Manav Gupta UBS Raises Buy $197.00 $167.00
Neil Mehta Goldman Sachs Raises Sell $171.00 $130.00
Nitin Kumar Mizuho Raises Neutral $173.00 $150.00
Roger Read Wells Fargo Raises Equal-Weight $171.00 $138.00
Doug Leggate B of A Securities Raises Buy $210.00 $156.00
Ryan Todd Piper Sandler Raises Overweight $161.00 $155.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Valero Energy. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Valero Energy compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Valero Energy's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Valero Energy's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Valero Energy analyst ratings.

About Valero Energy

Valero Energy is one of the largest independent refiners in the United States. It operates 15 refineries with a total throughput capacity of 3.2 million barrels a day in the United States, Canada, and the United Kingdom. Valero also owns 12 ethanol plants with capacity of 1.6 billion gallons a year and holds a 50% stake in Diamond Green Diesel, which has capacity to produce 1.2 billion gallons per year of renewable diesel.

Financial Milestones: Valero Energy's Journey

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Decline in Revenue: Over the 3 months period, Valero Energy faced challenges, resulting in a decline of approximately -12.84% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Valero Energy's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.91%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Valero Energy's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.74% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Valero Energy's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.98%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.42, Valero Energy adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Basics of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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