Wells Fargo Starts Delek Logistics Partners, LP (DKL) at Outperform

Wells Fargo initiates coverage on Delek Logistics Partners, LP (NYSE: DKL) with a Outperform rating and $25-$28 valuation range.

The firm comments, "DKL is poised to deliver an attractive total return driven by its (1) visible distribution growth potential supported by drop-down acquisitions, (2) upside potential tied to future investments by its GP sponsor, (3) predominantly fee-based cash flows, and (4) solid balance sheet, in our view. We forecast a five-year distribution CAGR of 11% predicated on $246MM of aggregate drop-down acquisitions in 2013-14 and a favorable pipeline tariff re-contracting in 2015."

For an analyst ratings summary and ratings history on Delek Logistics Partners, LP click here. For more ratings news on Delek Logistics Partners, LP click here.

Shares of Delek Logistics Partners, LP closed at $21.98 yesterday.

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