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

Related DK
Earnings Scheduled For August 6, 2014
Why US Holdings (DK) Delek Could Be Positioned for a Slump - Tale of the Tape

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
Aug 2014Cowen & CompanyUpgradesMarket PerformOutperform
Aug 2014Simmons & Co.UpgradesNeutralOverweight
Jul 2014Wolfe ResearchUpgradesPeerperform

View More Analyst Ratings for DK
View the Latest Analyst Ratings

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

 

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