Investing.com – Mizuho reiterated a Neutral rating on Valero Energy () with a price target of $289.00. The stock currently trades at $269.44 with a market cap of $80 billion, and InvestingPro analysis suggests the company is undervalued relative to its Fair Value. The stock has delivered an impressive 94.5% return over the past year, trading near its 52-week high.
The firm expects strong results for Valero in the second quarter of 2026, driven by strong margin indicators in the quarter. This outlook aligns with an InvestingPro Tip noting that 6 analysts have revised their earnings upwards for the upcoming period, with full-year 2026 EPS forecast at $27.42. For deeper insights, investors can access Valero’s comprehensive Pro Research Report, available for this and 1,400+ other US equities. Lower capture in most regions due to backwardation and physical crude oil market premiums partly offset the margin strength.
Mizuho models second-quarter 2026 EBITDA and earnings per share estimates of $4.7 billion and $9.51, respectively. The estimates are 3% and 6% below consensus estimates of $4.8 billion and $10.13.
Demand appears robust in the company’s wholesale channels, with no signs of demand destruction and strong export pull. Global product cracks remain elevated as global refining infrastructure remains constrained.
The firm maintains its net asset value-based price target of $289 per share. Mizuho cited its current view of valuations versus refining subsector trends and preference elsewhere in its coverage.
In other recent news, Valero Energy Corporation announced a regular quarterly cash dividend of $1.20 per share, payable on June 23, 2026, to stockholders of record as of May 21, 2026. Additionally, UBS reiterated a Buy rating for Valero Energy, highlighting strong demand and effective risk management practices that helped the company avoid hedge losses or margin calls. At Valero’s 2026 annual meeting, all director nominees were elected to serve until the 2027 meeting, and the company announced the upcoming retirement of Eric A. Fisher, Senior Vice President of Product Supply, Trading, and Wholesale, effective around July 1, 2026.
Valero Energy continues to hold a significant position in the US refining industry, with the US Energy Information Administration reporting a decrease in national refining capacity due to the conversion and closure of major refineries. Despite the recent drop in crude oil prices affecting several US energy stocks, Valero’s strategic management and market positioning remain strong. The company’s proactive inventory management in the first quarter of 2026 was noted as a key factor in maintaining financial stability. These developments come amid broader industry changes and market fluctuations.
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