Maintaining Buy Recommendation on Valero in the Face of Margin Pressure

6/6 - "We are maintaining our Buy recommendation on Valero Energy Corporation (VLO) shares despite the ongoing refining-margin weakness due to high crude oil prices and weak-product demand."

"We believe that high feedstock and operating costs will continue to weigh on near-term margins. However, our long-term view of Valero remains favorable. We also like the company’s recent restructuring initiatives and its track record of returning significant capital to shareholders."

"We believe Valero shares have become extremely attractive. Our unchanged $65 price objective results from 2009 P/E and P/CF multiples of 10.1x and 8.5x, respectively."