Jean Ann Salisbury, an analyst from Bank of America Securities, reiterated the Hold rating on Delek US Holdings (DK – Research Report). The associated price target is $14.00.
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Jean Ann Salisbury’s rating is based on a number of considerations involving the current market situation and specific impacts on Delek US Holdings. One of the key factors is the introduction of new tariffs on Canadian oil, which were initially proposed at 25% but now stand at 10%. Although this adjustment is less severe than initially anticipated, the uncertainty regarding the duration of these tariffs adds a layer of complexity to the market environment, warranting a cautious approach.
Furthermore, while Delek US Holdings (DK) has a significant presence in the US Gulf Coast, where the impact of these tariffs might be less pronounced compared to other regions, the overall constraints on heavy crude supply could still pose challenges. The flexibility of Gulf Coast refineries in adjusting to foreign crude economics provides some resilience, yet the general market conditions and the uncertainty of tariff durations justify a Hold rating rather than a more aggressive stance. These factors combined suggest a steady outlook without immediate catalysts for significant upward momentum in the stock price.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of DK in relation to earlier this year.
