Market Overview

UPDATE: Credit Suisse Reiterates On Delek US Holdings as 2Q Earnings Risks are Receding

Share:
Related DK
Vetr Top Raters Bullish On This Oil Refiner
Barclays May Be Positive On Oil, But Neutral On Refiners: Revises Ratings For Phillips 66, Delek And Others

In a report published Friday, Credit Suisse analyst Edward Westlake reiterated a Neutral rating on Delek US Holdings (NYSE: DK), and raised the price target from $36.00 to $40.00.

In the report, Credit Suisse noted, “Back in January, we downgraded 3 refiner stocks to signal that investors were too pessimistic on US crude prices and it was time to buy E&P/OFS. Last Friday, in our PM snapshot, we argued that the producer rally may be running into some resistance and that there could be some rotation into refining. Today, we are adding back 2 of the names we downgraded, DK, WNR, to add to ALJ and ALDW in the Permian basket.

"We like these names for their Midland exposure (the Permian Party). However, this is also a signal that a) risks to 2Q refiner earnings are receding in general, b) there is some relative value in refining vs Energy and c) risks on the US crude market increase as we move through the year (seasonality).”

Delek US Holdings closed on Thursday at $32.59.

Latest Ratings for DK

DateFirmActionFromTo
Jul 2016BarclaysDowngradesOverweightEqual-weight
Jul 2016JP MorganDowngradesOverweightNeutral
Jul 2016Scotia Howard WeilDowngradesOutperformSector Perform

View More Analyst Ratings for DK
View the Latest Analyst Ratings

Posted-In: Credit Suisse Edward WestlakeAnalyst Color Price Target Analyst Ratings

 

Related Articles (DK)

View Comments and Join the Discussion!