Wednesday, September 29, 2010

Barclays (NYSE:BCS) Reiterates "Overweight" on Valero (NYSE:VLO)

Valero Energy (NYSE:VLO) retains an "Overweight" rating from Barclays (NYSE:BCS), also keeping its price target and earnings per share estimates in place as well.

Barclays noted the sale of its Paulsboro refinery to PBF Holding Co. in particular, saying while it's a positive move, it's not enough to change their expectations.

"After the close on 9/27/10, Valero announced that the company signed an agreement to sell its 185 mb/d (000's b/d) Paulsboro refinery to PBF Holding Co...We think this announced asset sale is a slight positive factor for VLO, with selling price largely in-line with our expectations...We also think this announcement is a positive factor for Sunoco (NYSE:SUN) because it demonstrates that there is still a market for Northeast refineries," said Barclays.

Earnings per share remain at $1.70 for 2010 and $2.10 for 2011.

Valero closed Tuesday at $17.07, gaining $0.19, or 1.13 percent. They have a price target of $22 on them.

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