Delek US, Delek Logistics, Alon USA Partners all seen as neutral by Barclays

|About: Delek US Holdings, Inc. (DK)|By:, SA News Editor

Delek US Holdings (NYSE:DK) is resumed at Barclays with an Equal Weight rating and a $28 price target following completion of the deal for Alon USA Energy (NYSE:ALJ), believing shares will be held back from further relative gains until execution on post-merger synergies and improvements at the beleaguered El Dorado and Krotz Spring projects are sustainably visible.

Barclays also resumes Delek Logistics Partners (NYSE:DKL) at Equal Weight with a $33 target after outperforming the sector due to its visible near-term growth prospects and stable cash flows, but the firm sees limited growth opportunities beyond DKL's finite dropdown inventory.

The firm also resumes coverage of Alon USA Partners (NYSE:ALDW) at Equal Weight and a $12 target, as ALDW's prospects within the consolidated entity look limited, as DK's core DKL logistics MLP now takes center-stage for dropdowns, growth and cash/value generation back to the parent.


Subscribe for full text news in your inbox