UBS maintains Buy rating on Valero as stock surges 47.6% amid strong refining margins and green fuel growth

UBS has reaffirmed its Buy rating on Valero Energy Corporation, citing a 47.6% stock rally over six months driven by strong refining margins and tight fuel supply. Valero is also expanding into renewable diesel and sustainable aviation fuel, positioning itself for growth in low-carbon energy. The stock's positive outlook is supported by a strong earnings estimate increase and a favorable PEG ratio, indicating potential for continued gains. This highlights Valero's strategic shift toward sustainable fuels alongside its core refining business.