UPDATE: Credit Suisse Reinstates Coverage on Valero Energy Corporation with Neutral Rating, $45 PT on Important Year, Less Upside

In a report published Friday, Credit Suisse analyst Edward Westlake reinstated coverage on Valero Energy Corporation

, downgrading the rating from Outperform to Neutral, and a $45.00 price target. In the report, Westlake noted, “We reinstate coverage of VLO with a $45 target price but a Neutral rating. 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.