JPMorgan analyst Phil Gresh upgraded Valero Energy to Overweight from Neutral and raised his price target for the shares to $105 from $102. Valero's corporate structure simplicity and "compelling combination" of solid free cash flow generation, strong balance sheet and disciplined capital allocation make it "uniquely positioned" to outperform the refining sector, Gresh tells investors in a research note. Further, the analyst believes Valero's position in Corpus Christi, Texas, where several new crude pipelines could direct up to 2mmbpd of light sweet crude in the second half of 2019 and 2020, is underappreciated by the market.

Citi analyst Vikram Bagri raised the firm's price target on Valero to $192 from $160 and keeps a Buy rating on the shares. The analyst refreshed the company's model for the latest commodity prices. Valero embarked on a larger maintenance period in Q1, which should position the company well ahead of a potentially strong summer driving season, the analyst tells investors in a research note. However, Citi sees low prospects for a sharp price reaction to the Q1 print with the shares up 29% year-to-date.