Market Overview

UPDATE: Goldman Sachs Initiates Delek Logistics Partners at Buy on Growth Visibility

Related DKL
Delek US Holdings Announces Changes to Board of Directors
3 Small Caps With Dividends over 4% That Could Grow Even Bigger

Goldman Sachs initiated coverage on Delek Logistics Partners (NYSE: DKL) with a Buy rating and a $26 price target.

Goldman Sachs noted, "DKL's crude and refined product assets generate stable cash flows underpinned by long-term contracts with minimum volume commitments and inflation-indexed fee escalators. The Right of First Offer (ROFO) for assets currently held by its parent enhances future distributable cash flow growth visibility and provides meaningful potential upside to our estimates. DKL has an attractive 7.0% upfront yield and a strong balance sheet with a 2.3X Debt/EBITDA ratio."

Delek Logistics Partners closed at $22.16 on Monday.

Posted-In: Goldman SachsAnalyst Color Initiation Intraday Update Analyst Ratings

 

Most Popular

Related Articles (DKL)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free