Delek Logistics initiated with a Buy at Truist

Truist analyst Neal Dingmann initiated coverage of Delek Logistics Partners with a Buy rating and $46 price target. The analyst believes Delek units have material upside driven, by a combination of stable high margin affiliate business coupled with growing third-party activity with improving margins. The firm forecasts the partnership to generate significant, incremental free caash flow from the strategic business combination. It also believes upcoming indices rebalance could provide additional unit price upside.