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UPDATE: Bank of America Initiates Delek Logistics at Buy on Solid Assets

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UPDATE: Goldman Sachs Initiates Delek Logistics Partners at Buy on Growth Visibility
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Notable earnings after Tuesday's close (Seeking Alpha)

Bank of America initiated coverage on Delek Logistics (NYSE: DKL) with a Buy rating and a $25 price objective

Bank of America noted, "Formed by Delek US Holdings (NYSE: DK), DKL went public on 1 November 2012 in an approximately $195mn IPO priced at $21/unit (at the high end of the $19-21/unit range). DKL trades at a discount to peers on an adjusted EV/EBITDA and distribution yield basis, which we see as unjustified given the majority of DKL's assets are traditional for an energy MLP and considering material dropdown potential from DKL's GP, DK. Key risks to our Buy rating include: 1) DKL's smaller size, 2) significant exposure to DK, and 3) East TX assets will run below minimum volume commitments (MVCs) beginning in early 2013."

Delek Logistics closed at $22.16 on Monday.

Latest Ratings for DKL

DateFirmActionFromTo
Apr 2015BarclaysMaintainsEqual-weight
Dec 2014BarclaysMaintainsEqual-weight
Nov 2014BarclaysMaintainsEqual-weight

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Posted-In: Bank of AmericaAnalyst Color Initiation Intraday Update Analyst Ratings

 

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