Valero Energy Corporation (VLO) has been named a Top 2027 Long Idea and rated Strong Buy, with a new price target of $660. The target implies potential upside of 50%.
The bullish outlook cites sustained disruptions in the Strait of Hormuz, which are keeping crack spreads elevated, and low US oil reserves. These factors are expected to support Valero’s earnings and valuation.
In the second quarter of 2026, Valero reported earnings per share of $12.54, beating analyst expectations. Revenue was $44.8 billion, also above expectations.
Valero’s share price has risen 95% since April 2026. The stock trades at 8x forward earnings, which the analysis considers a significant value.
Separately, Citigroup raised its price target on Valero to $485 from $302.