Zacks Investment Research downgraded shares of Valero Energy Corporation (VLO) from OUTPERFORM to NEUTRAL on June 26, 2014, with a target price of $54.00.
We are downgrading our recommendation for Valero Energy to Neutral from Outperform. Our revision comes on the wake of U.S Department of Commerce clearing the way for the exports of an ultra-light form of oil known as condensate. This regulatory development affected the fortunes of refiners across U.S. This would expose the company further to the weakness in refining margins. Other risks include natural disasters, unplanned plant disruptions and changes in environmental regulation. However, Valero remains upbeat for next year and foresees attractive opportunities that will position it uniquely among refiners to grow earnings and cash flow per share. It is also consistently reviewing its refining portfolio and enhancing the asset base by acquiring refinery assets that enhance its operating performance.
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