Valero price target raised to $165 from $156 at RBC Capital

RBC Capital analyst TJ Schultz raised the firm’s price target on Valero to $165 from $156 and keeps an Outperform rating on the shares after its Q4 earnings beat. The company is operating from a position of strength that is allowing higher capital returns, and the benefits from strong refining margins are expected to persist into 2023, the analyst tells investors in a research note. The robust refining environment which has allowed for swift reduction of Valero’s pandemic debt and a cash build should lead to lead to higher dividends and more stock buybacks, the firm added.