In a report released today, Jason Gabelman from TD Cowen maintained a Hold rating on Delek US Holdings, with a price target of $36.00.
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Jason Gabelman has given his Hold rating due to a combination of factors related to Delek US Holdings’ recent performance and future prospects. The company’s third-quarter results showed a notable improvement in its wholesale segment, contributing to a significant earnings beat. However, Gabelman believes that the market will require consistent performance in this area to fully appreciate the company’s value.
Additionally, while Delek’s small refinery exemptions were in line with expectations, the analyst remains cautious about the company’s ability to capitalize on these exemptions in the future. Despite increasing the price target to $36, based on the net present value of free cash flow projections, Gabelman maintains a Hold rating as he anticipates that further evidence of sustained earnings improvement is necessary for a more favorable assessment.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 6.7% and a 56.54% success rate. Gabelman covers the Energy sector, focusing on stocks such as TotalEnergies, Chevron, and Shell.
In another report released yesterday, Scotiabank also maintained a Hold rating on the stock with a $33.00 price target.