UPDATE: Bank of America Downgrades Valero Energy as Risk/Reward is No Longer Attractive

In a report published Tuesday, Bank of America analyst Doug Leggate downgraded the rating on

from Buy to Neutral, but reiterated the $63.00 price target. In the report, Bank of America noted, “We are closing out our long standing constructive view of the US refiners. From here, we believe upward earnings momentum that has underpinned a threefold jump in sector valuations has stalled. While our PO's suggest some value is left on the table, we believe embedded volatility has increased to where risk/reward is no longer attractive. From here, we re-categorize the US refiners as a trading call reprising the traditional characteristics of the sector and drawing a line under the structural rerating associated with a US crude advantage that has largely played out.” Valero Energy closed on Monday at $56.22.