Citi's Top Takeaways From Valero Management Meeting (VLO)

Citi analysts met with Valero Energy Corp VLO management last week. Citi analysts said, "VLO will defend its investment grade credit rating. With $2.2 billion in cash on hand (July), VLO has some dry powder for a moderate size acquisition. A large deal would require outside capital and the company has the capacity to raise debt should something become compelling enough." They also said, "VLO will defend its investment grade credit rating. With $2.2 billion in cash on hand (July), VLO has some dry powder for a moderate size acquisition. A large deal would require outside capital and the company has the capacity to raise debt should something become compelling enough." Valero is rated Buy/High Risk with a price target of $25.00. Shares are currently trading at $16.37.