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The Word on the Street: What Analysts Are Saying about Delek ahead of Its 1Q16 Earnings

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Aug. 18 2020, Updated 9:20 a.m. ET

DK’s analyst ratings

In this series, we’ve examined Delek US Holdings’ (DK) 1Q16 estimates, given a segmental analysis, and analyzed the company’s stock performance, recent moves, and capital expenditure plans ahead of its earnings release, which is expected on May 5, 2016. Now let’s examine analyst ratings.

The Word on the Street: What Analysts Are Saying about Delek ahead of Its 1Q16 Earnings

The above table shows that eight of the 11 firms have rated Delek (DK) as “buy,” “overweight,” or “outperform.” The highest 12-month price target for DK stands at $30, indicating a 78% gain from current levels. The remaining three firms have rated Delek as a “hold.”

The average 12-month price target for DK stands at $21, indicating a 25% gain from current levels. None of the above firms has given a “sell” rating to Delek, and the company’s lowest 12-month price target stands at $11, implying a 35% loss from current levels.

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The highest price target for DK was given by Cowen, whereas the lowest price target was specified by Piper Jaffray. RBC Capital Markets, Credit Suisse, Wolfe Research, and J. P. Morgan have all given price targets equal to or exceeding $22 per share for DK. On the other hand, firms like Macquarie, Goldman Sachs, and Piper Jaffray, have given “neutral” recommendations on the stock.

Analyst recommendations for peers

Alon USA Energy (ALJ), Marathon Petroleum (MPC), and CVR Refining (CVRR) have been rated as “buy” by 9%, 83%, and 14% of analysts surveyed, respectively.

If you are looking for exposure to value stocks, you might consider the iShares Russell 1000 Value ETF (IWD), which has ~13% exposure to energy sector stocks. IWD also has exposure to other sectors, with ~28% of its total holdings in the financial sector, ~12% in healthcare, ~12% in information technology, and ~11% in the industrial sector.

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