B of A Securities has downgraded Valero Energy Corp (VLO) to Neutral from Buy, a move that underscores increased caution regarding the company's outlook. This revision may reflect concerns about competitive pressures, market conditions, or execution risks that could impact performance.
Valero Energy, headquartered in San Antonio, Texas, is a leading manufacturer and marketer of transportation fuels and other petrochemical products. The company operates 15 petroleum refineries across the United States, Canada, and the United Kingdom. As of December 9, 2025, Valero boasts a market capitalization of $52.7 billion and a price-to-earnings ratio of 35.27, with earnings per share of 4.83.
The downgrade comes as Valero prepares for upcoming earnings reports, with estimates suggesting an EPS of $4.42 and revenue of $28.9 billion for the quarter ending July 22, 2026. Recent performance has shown promise, with a Q3 2025 EPS of $3.66, exceeding estimates by 18.8%.
Analyst ratings and price targets are based on professional assessments derived from research and financial models. However, these evaluations should not be viewed as the sole basis for investment decisions. Investors must consider a range of factors, including company fundamentals, competitive positioning, and industry trends, as analyst perspectives may vary and evolve over time.
This update provides insight into the shifting landscape for Valero Energy Corp as it navigates potential challenges in the energy sector.