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Shares of Delek Logistics (NYSE: DKL) began to rebound after Bank of America Merrill Lynch released a note Thursday morning raising its price target from $39 to $45 and reiterating a Buy rating.

Along with increasing the price target, Bank of America also is increasing its EPS guidance:

  • FY2014 from $2.43 to $2.82
  • FY2015 from $2.32 to $2.43
  • FY2016 from $2.29 to $2.39

The Q2 2014 Delek reported in early August is being attributed to stronger-than-expected performance of Pipeline and Transportation segment, as well stronger-than-expected margin performance from Delek West Texas wholesale business.

The estimates from Bank of America are conservative, as the note highlights:

"We do not incorporate unannounced third-party acquisitions or a potential recontracting of the Paline pipeline into our model, but recognize there could be upside to our estimates if DKL can consummate deals at accretive terms or recontract Paline at favorable rates."

Shares of Delek were last trading up 0.51 percent, reversing morning losses of roughly 3.5 percent.

Latest Ratings for DKL

Aug 2017BarclaysMaintainsEqual-Weight
Nov 2016Wells FargoUpgradesMarket PerformOutperform
Oct 2016Wells FargoDowngradesOutperformMarket Perform

View More Analyst Ratings for DKL
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Price Target Reiteration Analyst Ratings


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