Delek US downgraded to Underweight from Overweight at Wells Fargo

Wells Fargo analyst Roger Read downgraded Delek US to Underweight from Overweight with a price target of $24, down from $40, citing the trend towards mid-cycle refining margins by 2024 combined with mid-cap refining multiples. As a potential near-term catalyst, Delek might attempt to force the market to value its approximately four-fifths ownership in DKL and DK as separate units, Read argues. Versus the last several quarters, he does not anticipate a significant expansion in U.S. inland crude differentials in 2023 or 2024. Historically, wider inland crude differentials have been strongly correlated with Delek share price outperformance, the analyst adds.