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• VLO 67% Rate It

Oil refining giant Valero Energy Corporation ( VLO ) late Wednesday received some bullish commentary from analysts at Wells Fargo.

The firm initiated coverage on VLO with an "Outperform" rating and a price target range of $31-33. That range suggests up to a 37% upside to the stock's Wednesday closing price of $24.02.

A Wells Fargo analyst commented, "Our rating highlights our confidence that Valero's advantageous locations and highly complex refineries will allow it to leverage its competitive position. Additionally, Valero trades at a discount to its peers on a per-barrel basis of refining capacity, current earnings, and cash flow estimates. We value Valero at 4.6-4.8x our 2013 EBITDA estimate of $5,015 million. This multiple range is consistent with the peer group average."

Valero shares posted small losses in premarket trading Thursday.

The Bottom Line
Shares of Valero Energy ( VLO ) have a 2.50% dividend yield, based on last night's closing stock price of $24.02. The stock has technical support in the $20-$22 price area. If the shares can firm up, we see overhead resistance around the $26-$27 price levels.

Valero Energy Corporation ( VLO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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