Analysts at RBC Capital provided their views on Valero Energy Corporation (NYSE:VLO), increasing their Q1 estimates, despite the fact that refining cracks continue to surge. The company’s refining margin indicator jumped to the $16/bbl range, up $4/bbl from prior quarter levels and more than double year-ago levels. Notably, March levels are above $20/bbl.

Given flat-price and derivative product volatility, the analysts do expect some pressure on capture in Q1 but increase their Q1 EPS to $1.58 from $0.76.

The analysts believe the company holds the best refining assets in the group, which keeps them constructive amid the current backdrop. Their price target was increased to $108 from $98, while their outperform rating was maintained.