UPDATE: Goldman Sachs Initiates Delek US Holdings at Neutral on Upside

In a report published on Tuesday, Goldman Sachs analyst Arjun N. Murti initiated coverage on Delek US Holdings DK with a Neutral rating and a $37 price target.

In the report, Goldman Sachs stated, "Like the rest of the sector, DK shares have corrected more sharply than we expected over the past few months on narrowing Brent-WTI crude oil spreads. However, we expect spreads to begin to re-widen in 4Q2013 and remain bullish on MidCon refiners. Relative to other SMID-cap refiners, we see greater upside in Buy-rated Western Refining, Alon USA Partners, and Northern Tier Energy, but have a favorable fundamental outlook for Delek."

Delek US Holdings closed on Tuesday at $28.46.