Add another name to the list of people not at all upbeat about the prospects for shares of Delek US Holdings and its peers. Ben Brownlow at Raymond James has trimmed his price target for Brentwood-based Delek to $30 from $34. Delek (Ticker: DK), which peaked above $41 in the spring, has since slid all the way below $23. Similarly, Brownlow's peers at Deutsche see no improvement soon in the profitability of refiners, who have seen margins shrink as the gap between the prices of U.S. oil and the global Brent crude benchmark has narrowed.
[W]e hope for lower equity prices and 20%+ upside to our price targets before refining upgrades. We are not there yet. We are prepared to wait, as global oil markets have become weakened by super-high oil prices and demand may be too damaged to allow for a strong winter for refining.