Valero price target raised to $197 from $167 at UBS

UBS raised the firm’s price target on Valero (VLO) to $197 from $167 and keeps a Buy rating on the shares. The company’s refining margins are expected to remain well above mid-cycle even in 2024, the analyst tells investors in a research note. The two new refineries in Mexico and Nigeria are also expected to have a limited impact on global supply in the first half of 2024, the firm added. Closure of the Rodeo refinery by Phillips 66 (PSX) will further tighten the West Coast gasoline markets, which should work in Valero’s favor, UBS stated.