Nitin Kumar CFA, an analyst from Mizuho Securities, maintained the Sell rating on Delek US Holdings (DK – Research Report). The associated price target is $27.00.
Nitin Kumar CFA of Mizuho Securities has assigned a Sell rating to Delek US Holdings, based on a variety of factors. Delek reported strong results for 3Q23 with beats across all segments, including refining, logistics, and retail. The company’s refining performance was robust, with high volumes and margin capture. Additionally, logistics saw good gathering and processing results in the Permian, and the retail segment reported a small beat. Despite these positive outcomes, Nitin Kumar maintains an Underperform rating due to Delek’s relative competitive position within the industry.
In the third quarter, Delek delivered solid results with EBITDA and EPS figures that exceeded both Mizuho Securities’ and consensus estimates. This strong performance was seen across all business segments, with refining showing crude oil throughput above estimates, retail margins surpassing expectations, and logistics benefiting from strong contributions from the Midland and Delaware gathering systems. Furthermore, the company is actively returning cash to shareholders through share repurchases and recently increased its quarterly dividend. Despite reducing its debt by approximately $176 million in the quarter, Nitin Kumar CFA maintains his Sell rating, suggesting that he believes the stock isn’t positioned well for future growth compared to other companies in the sector.
In another report released on November 7, Wells Fargo also maintained a Sell rating on the stock with a $25.00 price target.
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Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DK in relation to earlier this year.
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Delek US Holdings (DK) Company Description:
Delek US Holdings, Inc. engages in the transportation, storage, and wholesale distribution of crude oil. It operates through the following segments: Refining, Logistics, Retail, and Corporate and Other. The Refining segment processes crude oil and other purchased feedstocks for the manufacture of transportation motor fuels, including gasoline, diesel fuel and aviation fuel, asphalt, and other petroleum-based products. The Logistics segment gathers, transports, and stores crude oil and markets, distributes, transports, and stores refined products. The Retail segment markets gasoline, diesel and other refined petroleum products, and convenience merchandise through a network of company-operated retail fuel and convenience stores. The company was founded in 2001 and is headquartered in Brentwood, TN.
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