- Valero Energy plans to close its Benicia refinery, significantly impacting California's refining capacity.
- Analysts predict an average upside potential of 27.70% for Valero's stock.
- Valero holds an "Outperform" status with a GF Value indicating potential growth.
Valero Energy (NYSE: VLO) is making headlines with its strategic decision to shut down the Benicia oil refinery in 2024. The move comes as a response to California's increasingly stringent regulatory climate, which has driven up operational costs. This facility accounts for approximately 9% of California’s crude oil refining capacity, making its closure a significant event in the state's energy sector. Valero's latest earnings report revealed a $1.1 billion impairment and highlighted shrinking refining margins, putting further pressure on the company.
Wall Street Analysts Forecast
Analyst expectations for Valero Energy Corp (VLO, Financial) convey a promising outlook. With price targets from 17 analysts, the average target is set at $144.76, boasting a high estimate of $165.00 and a low of $121.00. This suggests a potential upside of 27.70% from the current stock price of $113.36. Investors seeking deeper insights can explore further details on the Valero Energy Corp (VLO) Forecast page.
Valero Energy Corp's (VLO, Financial) brokerage recommendation is a robust 2.1, supported by 20 brokerage firms, which translates to an "Outperform" rating. The rating scale ranges from 1 (Strong Buy) to 5 (Sell), positioning Valero favorably in the eyes of market analysts.
Examining Valero from the perspective of GuruFocus estimates, the projected GF Value for one year stands at $125.13. This estimate reflects a projected upside of 10.38% from the current price of $113.36. The GF Value represents GuruFocus' assessment of the stock's fair trading value, derived from historical trading multiples, past business growth, and future performance estimates. For a detailed financial overview, visit the Valero Energy Corp (VLO, Financial) Summary page.
