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Investing.com - Raymond (NSE:RYMD) James has lowered its price target on Valero Energy (NYSE:VLO) to $170.00 from $172.00 while maintaining a Strong Buy rating. The energy giant, currently trading at $140.36 with a market capitalization of $44.25 billion, appears slightly undervalued according to InvestingPro Fair Value analysis.
The firm believes Valero remains well-positioned to capitalize on solid long-term U.S. refining conditions, despite a complicated near-term macroeconomic picture that is likely to be choppy.
Raymond James expects an improved refining landscape in 2026 and beyond, with renewable diesel and sustainable aviation fuel providing additional tailwinds during the same timeframe.
The firm notes that Valero’s disciplined low-cost strategy has positioned the company at the forefront of the sector, even as momentum in the refining space may be softening.
According to Raymond James, Valero’s strong standalone position enables the company to return effectively all of its free cash flow to shareholders, while maintaining high optionality.
In other recent news, Valero Energy Corporation reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share (EPS) of $2.28, surpassing the forecasted $1.76. Revenue also exceeded expectations, reaching $29.89 billion compared to the anticipated $27.97 billion. These results highlight Valero’s strong performance despite certain operational challenges that have raised investor concerns. The company’s ability to outperform earnings and revenue forecasts demonstrates resilience in its operations. No information about mergers or acquisitions was reported in the recent developments. There were also no updates on analyst upgrades or downgrades for Valero Energy Corporation. Investors may continue to monitor Valero’s operational strategies and market conditions following these recent financial disclosures.
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