12:45 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $175, down $5, reflects a 7.0x multiple of projected '24 operating cash flow, slightly below VLO's historical average. We lift our '24 EPS view by $0.02 to $15.23 and '25's by $0.12 to $14.78. Q1 EPS of $3.82, vs. $8.27, beat consensus by $0.60. Q1 EBITDA ($2.4B) fell 50% Y/Y. Refining utilization (87%) fell six percentage points Y/Y, while throughput volumes (2.76 mb/d) dropped 6%. YTD, VLO's shares are up 28%, as geopolitical tensions and turnaround activity have placed downward pressure on supply levels; however, we think VLO could face headwinds for the rest of '24. The U.S. Energy Information Administration forecasts refined product demand to remain flat Y/Y in '24; however, we believe that sticky inflation and concerns about economic growth, while U.S. consumers have almost exhausted their savings, could impact refined product demand. In addition, 1 mb/d in global refining capacity is set to come online in '24, which could impact VLO's margins and cash flow generation.