Ahead of the Bell: Oil Refiners
Monday April 23, 7:43 am ET
Goldman Lifts View on Oil Refiners, Boosts Rating on Valero Energy
NEW YORK (AP) -- A Goldman Sachs analyst on Monday boosted his rating on Valero Energy Corp., following an improved view for the entire oil refining sector, which was lifted to "Attractive" from "Neutral."
Arjun N. Murti, in a client note, lifted his rating on Valero Energy to "Buy" from "Neutral," and raised his target price to $82 from $71, saying the stock joins Marathon Oil Corp. as the best positioned to benefit from a second wave of a "multi-year 'super-spike' for oil markets."
Valero also joined Goldman's top-ten list of best energy stocks, replacing XTO Energy Inc., which still retains its "Buy" rating.
"There will be understandable questioning of the timing of our refining upgrade from a seasonal perspective," the analyst noted. But Murti believes tight refining supply and demand balances are expected to continue through 2009, at least.
Shares of Valero closed at $65.93 Friday on the New York Stock Exchange.
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I find it humerous that Bear Stearns downgraded MRO on Friday...
