UPDATE: Imperial Capital Initiates Valero Energy at In-Line

Imperial Capital initiated coverage on Valero Energy (NYSE: VLO) with an In-line rating and a $33 price target.

Imperial Capital noted, " Among the independent refiners, VLO's system is the most geographically diverse, spread across the Gulf and West Coasts, Mid-Continent, eastern Canada, and the U.K. Its refining hardware is also among the most sophisticated, which enables VLO to process price-advantaged sour and heavier crude streams. … The lower P/E multiple versus historic levels reflects the expansion in refining margins and profitability due to refiners' ability to process price-advantaged domestic crudes."

Valero Energy closed at $29.58 on Thursday.

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