Joe Laetsch, an analyst from Morgan Stanley, maintained the Hold rating on Delek US Holdings. The associated price target remains the same with $34.00.
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Joe Laetsch has given his Hold rating due to a combination of factors influencing Delek US Holdings. The company’s refining segment is expected to see a modest increase in EBITDA due to higher benchmark cracks, although this is somewhat offset by increased operational expenses. While the enterprise optimization plan is progressing, the overall margin capture is anticipated to remain stable.
In the logistics segment, the start-up of the Libby 2 gas plant is projected to enhance EBITDA, yet the overall growth is moderate. Despite these improvements, the company’s cash flow per share is slightly below consensus expectations, which tempers the outlook. These elements together suggest that while there are positive developments, they are not sufficient to warrant a more aggressive rating than Hold.
In another report released yesterday, Scotiabank also maintained a Hold rating on the stock with a $33.00 price target.