Credit Suisse Downgrades Delek US (DK) to Neutral
Get Alerts DK Hot Sheet
Rating Summary:
5 Buy, 11 Hold, 4 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Join SI Premium – FREE
Credit Suisse downgraded Delek US (NYSE: DK) from Outperform to Neutral with a price target of $19.50 (from $17.00), as they like ALJ more (which was upgraded).
Analyst Edward Westlake commented, "DK management have been assertive in their defense of the SOTP value proposition. In their presentations they have been highlighting that retail and the equity share of their MLP subsidiary, DKL, meant refining was free. Management have also acted, recently selling their retail for $535m, significantly above our carrying value. DK sits on a healthy cash balance of $377m in 2Q, which will increase with the retail sale. However, refining has been tough in 2016, partly due to margins, partly RINS and partly narrow crude spreads. Having spent a decent sum on its refining in recent years, and with no upcoming turnarounds, DK is well placed to survive some tougher times. However, to deliver equity upside in our framework, DK likely needs to close the ALJ transaction to capture further synergy benefits."
For an analyst ratings summary and ratings history on Delek US click here. For more ratings news on Delek US click here.
Shares of Delek US closed at $17.84 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
- KKR Real Estate Financial Trust (KREF) PT Lowered to $12 at JMP Securities
- Boston Scientific (BSX) PT Raised to $80 at BTIG
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT Change, DowngradesRelated Entities
Credit Suisse, Crude OilSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!