Barclays Maintains an 'Equalweight' on Delek US (DK); Strong 1Q11 Ahead, but Seems Priced In

Barclays maintains an 'Equalweight' on Delek US (NYSE: DK), PT lowered from $12 to $10.

Barclays analyst says, "We think DK's 4Q10 result is neutral for the shares' performance in light of the in-line result. Excluding special items, DK reported a 4Q10 loss of $0.14/share, compared to our and consensus estimate of a $0.15/share loss. During the quarter, we saw continued deterioration in the company's balance sheet. Despite an improved cash position, the company's debt to capital rose to 40% from 35% in 3Q10 and net debt to capital experienced a 3% rise to 36%."

"We lower our 1Q11 and 2011 EPS estimates for DK to $0.33 and $0.60, from $0.40 and $0.75, respectively, reflecting the lower-than-expected 1Q11 contango benefit as well as its hedging loss of $4.5 mm pre-tax."

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 $11.58 yesterday.

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