
Valero Energy (VLO) Stock Forecast & Price Target
Valero Energy (VLO) Analyst Ratings
Bulls say
Valero Energy's stock outlook is positively supported by its robust operational capabilities, highlighted by a throughput capacity of 3.2 million barrels per day across 15 refineries, and a strong performance in Q4 with an EPS of $3.82 exceeding estimates. The management anticipates demand growth of over 100,000 barrels per day, outpacing supply, and expects favorable renewable policies to bolster strong performance through 2026. Additionally, rising D4 RIN prices, driven by increased Renewable Volume Obligations and tariffs on foreign feedstocks, position Valero as a significant beneficiary in the renewable diesel segment, which is crucial for future revenue growth.
Bears say
Valero Energy is projected to face significant earnings challenges, particularly in its ethanol segment, with expected first-quarter earnings declining sharply from $96 million to a loss of $3 million due to weaker realized margins. Additionally, there are concerns regarding potential headwinds from reduced throughput and operational expenditure estimates, with revised projections indicating lowered EPS and EBITDA expectations for the first quarter of 2026. Furthermore, the company may encounter risks related to narrower product cracks, regulatory pressures, and operational constraints influenced by external geopolitical factors, all contributing to a deteriorating outlook for its financial performance.
This aggregate rating is based on analysts' research of Valero Energy and is not a guaranteed prediction by Public.com or investment advice.
Valero Energy (VLO) Analyst Forecast & Price Prediction
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