Delek US price target lowered to $24 from $25 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Delek US to $24 from $25 and keeps an Underweight rating on the shares. While earnings are expected to fall quarter-over-quarter in Q4 due to lower refining margins, this is well understood and the firm expects the market to focus more on the 2024 setup, where it sees still growing demand, combined with risks to the timeline for new capacity, helping to keep cracks elevated relative to history.