Why Delek Holdings Stock Popped on Monday

Yahoo Finance ·

Generally speaking, the U.S. stock market was frothy as the trading week kicked off. As ever, though, some titles were frothier than others; this certainly applied to Delek US Holdings ( DK +7.86% ) , which saw its equity zoom almost 8% higher on a very bullish analyst change. The prognosticator behind the move was TD Cowen's Jason Gabelman, who upgraded his recommendation on Delek to buy from hold. He also raised his price target to $58 per share from $50. According to reports, Gabelman believes that investors have fully priced in Delek's refining operations. However, they are overlooking the company's small refinery exemptions, which exempt it from producing a certain percentage of renewable fuels (or from purchasing compliance credits in lieu of this requirement). Additionally, the analyst waxed bullish about Delek's refining dynamics and its shrinking interest expenses. The latter in particular should positively affect the company's bottom line.

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