Burry Bets on Valero Energy Amid Venezuelan Oil Revival
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
- Optimistic Investment Outlook: Burry has held Valero Energy since 2020 and believes that as the U.S. deepens its role in reviving Venezuela's oil industry, the stock's attractiveness is increasing, which is expected to enhance profit margins across jet fuel, asphalt, and diesel products.
- Positive Market Reaction: Following Burry's comments, Valero's shares jumped about 10% on Monday, reflecting strong market confidence in its future earnings potential, especially against the backdrop of a possible recovery in Venezuelan oil supply.
- Increased Infrastructure Demand: Venezuela's oil infrastructure has severely deteriorated due to decades of underinvestment, and Burry notes that if large-scale rehabilitation begins, it will create potential demand for U.S. oilfield services companies, further boosting Valero's market position.
- Broad Industry Prospects: Burry also mentioned his holdings in Halliburton and sees potential upside for Schlumberger and Baker Hughes, believing these companies will be involved in rebuilding aging pipelines and refineries, indicating a strong demand for U.S. contractors.
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Analyst Views on BKR
Wall Street analysts forecast BKR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BKR is 55.17 USD with a low forecast of 52.00 USD and a high forecast of 61.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 56.730
Low
52.00
Averages
55.17
High
61.00
Current: 56.730
Low
52.00
Averages
55.17
High
61.00
About BKR
Baker Hughes Company is an energy technology company with a portfolio of technologies and services that span the energy and industrial value chain. The Company operates in two segments: Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET). OFSE segment provides products and services for onshore and offshore oilfield operations across the lifecycle of a well, ranging from exploration, appraisal, and development, to production, rejuvenation, and decommissioning. OFSE is organized into four product lines: Well Construction; Completions, Intervention, and Measurements; Production Solutions, and Subsea and Surface Pressure Systems. IET segment provides technology solutions and services for mechanical-drive, compression and power-generation applications across the energy industry, including oil and gas, liquefied natural gas (LNG) operations, downstream refining and petrochemical markets, as well as lower carbon solutions to broader energy and industrial sectors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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