Valero price target lowered to $158 from $165 at Mizuho

Mizuho lowered the firm’s price target on Valero (VLO) to $158 from $165 and keeps an Outperform rating on the shares as part of a Q4 preview. The firm expects a 10% and 86% miss versus consensus in Q4 on EBITDA and earnings, respectively, due to sequentially lower crack spreads, despite slight improvement in margin capture in key areas including the Gulf Coast. However, it continues to see Valero as a “top-tier operator with best-in-class assets and a solid balance sheet.”