Analyst Joe Laetsch from Morgan Stanley maintained a Sell rating on Delek US Holdings and keeping the price target at $15.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Joe Laetsch’s rating is based on a combination of factors that suggest a cautious outlook for Delek US Holdings. Despite an anticipated improvement in refining results due to higher benchmark cracks and stronger capture rates following planned maintenance, the company’s estimated earnings per share (EPS) and EBITDA for the second quarter are still projected to fall short of consensus expectations. Specifically, the EPS is expected to be lower than the consensus, indicating potential challenges in profitability.
Additionally, while the logistics segment is expected to maintain stable earnings, there is no significant growth projected in the near term. The company’s cash flow estimates also reflect a decrease compared to previous projections, which may raise concerns about its financial health. These elements combined contribute to the Sell rating, as they suggest limited upside potential and possible risks in the company’s financial performance.
Laetsch covers the Energy sector, focusing on stocks such as Delek US Holdings, Phillips 66, and Valero Energy. According to TipRanks, Laetsch has an average return of 2.2% and a 64.81% success rate on recommended stocks.