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Fly News Breaks for June 6, 2019
PARR, MPC, PSX, VLO
Jun 6, 2019 | 05:24 EDT
Goldman Sachs analyst Neil Mehta upgraded Valero Energy (VLO) to Buy from Neutral while lowering his price target for the shares to $92 from $96. U.S. refiners have pulled back 10% in the last month amid concerns about global oil demand, weak economic data points, softening refining margins and continued product builds, Mehta tells investors in a research note. The analyst, however, sees "bifurcation in the refining complex." He believes investors have an opportunity to own "quality," free cash flow generative companies and recommends buying Phillips 66 (PSX), Marathon Petroleum (MPC), Par Pacific (PARR) and now Valero. Mehta sees "underappreciated value" in Valero's renewable diesel segment given the focus on emissions reductions globally.