Valero Energy downgraded to Neutral from Outperform at Macquarie Macquarie believes the government's forced usage of biofuels is causing unintended consequences that will negatively impact refiners and may result in high RIN prices. The firm recommends taking profits in refiners with the greatest RIN risks and downgraded Valero (VLO) and HollyFrontier (HFC) to Neutral and CVR Energy (CVR) to Underperform.
Oppenheimer upgrades refiners on favorable fundamentals Oppenheimer upgraded to Outperform from Perform shares of HollyFrontier (HFC), Marathon Petroleum (MPC), Phillips 66 (PSX) and Tesoro (TSO) saying favorable industry fundamentals will continue to support higher valuations. Wide crude differential, low natural gas prices, growing refined product exports and improved petroleum demand should drive shares of refiners higher, Opco tells investors in a research note. The firm also raised its price target for Outperform rated Valero (VLO) to $70 from $65.