Valero $VLO Earnings

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Valero Energy Corp. (NYSE: VLO) was downgraded to Neutral from Buy at Goldman Sachs.

Goldman Sachs analyst Neil Mehta downgraded Valero to Neutral from Buy with an unchanged $68 price target after the stock’s relative outperformance compared to XLE ETF and his refining coverage names. The analyst notes that he remains positive on the company’s renewable diesel business, capital allocation strategy, and management team, but now sees its valuation better reflecting Valero’s mid-cycle earnings power. Mehta further cites his concerns with “crude feedstock economics” as OPEC+ cuts keep waterborne crude supply tight.

Shares closed up 4% at $66.16