Barclays Maintains an 'Equalweight' on Delek US (DK); Acquires Remaining 11.7% Interest in Lion Oil

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

Barclays analyst says, "This morning (10/11) Delek US Holdings announced that it has acquired the remaining 11.7% equity interest in Lion Oil from a consortium of 20 private investors for $13 million cash, bringing its equity ownership to 100% from 88.3%. This implied a purchase cost of $154 per daily barrel of complexity compared to the previous cost of $375. This transaction completed on October 7, 2011...We view this transaction positively due to its low valuation...we raise our 2011 and 2012 EPS estimates to $3.90 and $3.45, respectively, from $3.85 and $3.30."

"We reiterate our short-term bullish outlook on refiners and think all major refiners could offer substantial upside from the current price level. We recommend that investors add to positions in Valero (NYSE: VLO), Marathon Petroleum (NYSE: MPC), and Tesoro (NYSE: TSO), all rated Overweight/Positive."

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 $14.01 yesterday.

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