Why Did VLO, MPC, PSX Stocks Jump To 52-Week Highs Today?

Valero Energy, Marathon Petroleum and Phillips 66 jumped to annual highs amid rising diesel prices and positive expectations from their upcoming results.

• VLO stock jumped more than 4% at close after Mizuho raised its price target to $434 from $300 and maintained a ‘Neutral’ rating. 
• MPC stock gained nearly 5% at close after Mizuho analyst Nitin Kumar raised the price target to $457 from $304 and maintained a ‘Neutral’ rating. 
• PSX stock rose more than 3% at close after the analyst raised the company's target to $300 from $220. 

Shares of Valero Energy Corp. (VLO), Marathon Petroleum Corp. (MPC), and Phillips 66 (PSX) soared to 52-week highs on Thursday amid rising diesel prices and changes to Wall Street price targets. 

Diesel and gas prices across the U.S. have surged amid the ongoing energy supply disruptions in the Strait of Hormuz due to the war with Iran.

The National Average price of diesel as of Oct. 8 is $6.28 per gallon, according to AAA Fuel, up from $5.90 per gallon last month. 

VLO stock jumped more than 4% at close, while MPC stock gained nearly 5% and PSX stock rose more than 3%. 

Valero Energy Gets Conflicting Target Moves From Wall Street

VLO stock climbed to an annual high of $446.48 on Thursday, putting it on track for a second week of gains. 

Beyond rising diesel prices, the stock also drew attention on Wall Street. Mizuho raised Valero's price target to $434 from $300 and maintained a ‘Neutral’ rating, implying a downside of about 2%. The firm said that it had increased targets in the refiners group by 40% on average to reflect "higher and longer-lasting" crack assumptions.

Meanwhile, Jefferies lowered Valero's price target to $394 from $401 and kept a ‘Hold’ rating on the shares ahead of third-quarter results. The revised target implies about an 11% downside from its last close. 

The firm said that in a high-margin macro environment, Valero's consistent capture rate and its higher refining leverage than peers should drive strong performance this quarter, adding that it forecasts Valero to post its largest quarterly buyback at about $4 billion.

On Stocktwits, retail sentiment around VLO stock was ‘bearish’ at the time of writing. The company's shares are up more than 168% year-to-date.

Marathon Petroleum Lands Target Hike From Mizuho

MPC stock rose to a 52-week high of $467.85 on Thursday, also putting it on track for a second week of gains. 

Mizuho analyst Nitin Kumar raised the price target to $457 from $304 and kept a ‘Neutral’ rating on the shares. The revised target implies about a 1% downside from its last close. 

Marathon Petroleum has also been benefiting from rising energy prices in recent weeks due to the Iran war. Mizuho also said that it had increased price targets for refiners. 

On Stocktwits, retail sentiment around MPC stock was ‘bearish’ at the time of writing. Shares of the company are up more than 180% year-to-date.

Phillips 66 Gains From Rising Energy Prices, Wall Street Hike

PSX stock increased to an annual high of $282.64 on Thursday, clocking seven consecutive sessions in the green. 

The Mizuho analyst downgraded Phillips 66 to ‘Neutral’ from ‘Outperform’ but raised the target to $300 from $220. 

The revised target suggests an upside of about 6.5% from MPC’s last close. The analyst revised the company’s target alongside other refiners, including VLO and MPC, and cited the same reason. Mizhou added that higher earnings were already priced into the shares, and hence downgraded the company on valuation. 

On Stocktwits, retail sentiment around PSX stock was ‘neutral’ at the time of writing. Shares of the company are up more than 115% year-to-date.

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