Barclays Maintains an 'Equalweight' on Delek US (DK); Relatively Disappointing 3Q

Barclays maintains an 'Equalweight' on Delek US (NYSE: DK) price target of $18.00.

Barclays analyst says, "We think Delek's 3Q earnings miss versus consensus will have a negative impact on the shares' near-term performance particularly in view of the very strong outperformance reported by other refineries so far in this quarter. We estimate that 80% of DKs crude slate will be WTI-linked by some time in 2013 if current commercial arrangement discussions materialize, which implies a sensitivity of $6.60/share in earnings for every $10 per barrel change in the WTI spread. While clearly a benefit in the current environment, high exposure to the spread works in both directions...We decrease our 2011 and 2012 EPS estimates for DK to $3.40 and $2.95 from $3.90 and $3.45, respectively...However we still think Tesoro (NYSE: TSO), Valero (NYSE: VLO) and Marathon Petroleum (NYSE: MPC) offer more sustainable cash and earnings power through the market cycle."

For more ratings news on Delek US click here and for the rating history of Delek US click here.

Shares of Delek US closed at $16.13 yesterday.

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