UPDATE: JP Morgan Initiates Coverage On Valero Energy Corporation

Analysts at JP Morgan initiated coverage on Valero Energy Corporation VLO with a Neutral rating and $59 price target Tuesday.

Phil Gresh finds that Valero is the purest way to play the Gulf Coast crude theme as the company maintains greater than 53 percent of its refining capacity in the Gulf Coast.

Gresh also finds that the company is making significant investments to increase light crude processing and improve mix/margins via higher distillate yields.

Shares of Valero Energy closed Monday at $47.26.