Mizuho Upgrades Delek US (DK) to Outperform

Mizuho analyst Nitin Kumar upgraded Delek US (NYSE: DK) from Neutral to Outperform with a price target of $23.00.

The analyst comments "As we update models post 1Q25 earnings, we see potential weakness for global oil prices but expect gas and refining fundamentals to improve over the next 12 months. We are lowering our oil price outlook for 2H25/1H26 by ~10-11% as accelerating oversupply likely overshadows any stabilization of demand, while raising our U.S. natural gas price forecast over the same period by ~15% as structural undersupply continues. We also see improved U.S. refining fundamentals as the inventory outlook remains tight and oil prices weaken potentially lifting refining margins. While macroeconomic fundamentals remain volatile, we see selective opportunities in the sector as we continue to favor larger operators with stable cash generation and shareholder cash returns, and above-peer inventory/asset quality and depth. Overall, we are adding COP to Top Picks (remove CVX) alongside CTRA and CHRD, while upgrading AR, DINO and DK to Outperform. We are downgrading MUR to Neutral.

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 $16.33 yesterday.

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