TSO VLO SUN - April 16 (Reuters) - Citigroup said it lowered refiners Valero Energy Corp. (VLO.N: Quote, Profile , Research) and Tesoro Corp. (TSO.N: Quote, Profile , Research) to "hold" from "buy", saying recent strong performances had eroded much of their value proposition.
Citigroup, which has a $71 price target on Valero, said cash directed towards share buybacks and strong near-term earnings momentum may provide a short-term boost for shares.
The brokerage raised its price target on Tesoro to $120 from $112, but said that investment attraction had been eroded by the 70 percent absolute increase in value since the beginning of the year. Citigroup said its preferred pick in the sector was Sunoco Inc. (SUN.N: Quote, Profile , Research). The brokerage kept its "buy" rating and raised its price target on the stock to $90 from $85, adding that while shares have performed well, performance has lagged its peers. (Reporting by Nitya Rao in Bangalore)
