Simmons Raises Price Target on Delek US Holdings (DK) to $10; Remains Neutral
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Simmons maintained a Neutral rating on Delek US Holdings (NYSE: DK), and raised the price target to $10.00 (from $9.00), following the company's 2Q earnings report. Simmons adjusted its 3Q EPS estimates for the company to ($0.05), up from ($0.17), compared to the consensus estimates of ($0.04).
Analyst Jeff Dietert commented, "Management is working diligently in an attempt to enhance shareholder value, reviewing monetization options for the Retail segment and considering alternatives for purchasing the remaining 52% of ALJ that DK does not already own. Efforts, however, are confronted with an extremely challenging refining margin environment that is putting downward pressure on earnings and cash flow prospects for both DK and ALJ. While we expect DK’s strategic initiatives to positively impact the shares over the long-term (reducing 4 public companies down to 2, cutting costs, enhancing crude purchasing power), we believe weakness in refining margins will be an overwhelming consideration in the near-term."
Shares of Delek US closed at $13.51 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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