Morgan Stanley analyst Joe Laetsch maintained a Sell rating on Delek US Holdings (DK – Research Report) yesterday and set a price target of $18.00.
Joe Laetsch’s rating is based on several factors impacting Delek US Holdings’ financial performance. The company is experiencing increased operating expenses due to maintenance turnarounds and higher natural gas prices, which are partially offsetting the benefits of rising benchmark cracks. This situation has led to a less favorable outlook for the company’s refining segment, despite an increase in EBITDA from higher throughput.
Additionally, while the Logistics segment shows promising growth due to the acquisition of Gravity Water Midstream, the overall financial estimates for Delek US Holdings remain below consensus expectations. The anticipated earnings per share and EBITDA for the first quarter are lower than market predictions, contributing to the Sell rating. These factors combined suggest a challenging environment for the company, leading to a cautious stance from the analyst.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DK in relation to earlier this year.