UPDATE: Credit Suisse Reinstates Valero Energy with Neutral on Important Year, Less Upside
In a report published Friday, Credit Suisse analyst Edward Westlake reinstated coverage on Valero Energy Corporation (NYSE: VLO), downgrading the rating from Outperform to Neutral, and a $45.00 price target.
In the report, Westlake noted, “We believe that 2013 will be important for VLO owing to a surge in crude moving down to the Gulf and to the contribution of VLO's hydrocrackers (around $1bn-plus of EBITDA). Widening Gulf crude discounts and hydrocracker EBITDA in 2H13 provide offsets to the headwinds of narrower WTI-Brent spreads, lower expected international margins, the dreaded RINs and somewhat narrower near-term heavy crude differentials. VLO has decent upside at current levels, but less than our preferred picks.”
Valero Energy Corporation closed on Thursday at $36.98.
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