VOL. 124 | NO. 27 | Tuesday, February 10, 2009
Valero Shares Rise on Upgrade
NEW YORK (AP) - Shares of Valero Energy Corp. on Monday lifted after Goldman Sachs raise the refiner's price target and upgraded refineries across the board.
Valero shares rose $1.04, or 4.4 percent, to $24.63, in Monday afternoon trading. Shares have traded between $13.94 and $62.97 over the past 52 weeks.
Goldman Sachs analyst Arjun Murti boosted the company's price target to $25 from $18, and said refineries in 2009 will likely see higher margins as the declining demand for gasoline in the U.S. stabilizes and lower utilization rates have driven a tighter supply and demand balance than previously expected. Still, Murti held Valero and refinery companies at a "Neutral" rating since the stocks have rallied significantly off of December 2008 lows. Murti said Goldman holds a "longer-term bearish refining outlook" for the sector.
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