Deutsche Bank Starts Valero Energy (VLO) at Buy

Deutsche Bank initiated coverage on Valero Energy (NYSE: VLO) with a Buy rating and a price target of $60.

Analyst Ryan Todd said, "With the epicenter of the crude (and product) trade shifting from the Midcon to the Gulf Coast, VLO is well positioned to benefit from what we see as three primary dynamics: increasing light-medium crude competition, growing Canadian heavy access, and product export flexibility. Free cash flow generation is likely to see meaningful growth in 2015, and with US crude differentials (WTI and LLS) set to widen in 2015 from current, unsustainable levels, we prefer VLO's leverage to coming Gulf crude supply pressure."

For an analyst ratings summary and ratings history on Valero Energy click here. For more ratings news on Valero Energy click here.

Shares of Valero Energy closed at $45.13 yesterday.

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