Brian Martin at FIG Partners has lowered his rating on shares of Pinnacle Financial Partners to 'market perform' from 'market outperform' following the bank holding company's Q2 profit report. Before the report, Martin's price target was $53, just a bit above where Pinnacle (Ticker: PNFP) is changing hands today. Over at SunTrust Robinson Humphrey, analysts have trimmed their price target for Nashville-based Pinnacle to $62 from $63 but maintained his 'buy' rating.
Macquarie analyst Vikas Dwivedi has launched coverage of several refining stocks with positive ratings, saying the sector will benefit from tight capacity and solid financials. Among the companies getting 'outperform' ratings is Brentwood-based Delek US Holdings. Mid-morning Tuesday, Delek (Ticker: DK) was trading at about $36.50. So far this year, they're up 34 percent.
The board of Delek US Holdings has grown to six as a result of the company's recent purchase of 48 percent of Texas-based Alon USA Energy. Yonel Cohen, one of the Alon USA board members who stepped aside to make room for five Delek representatives, was added to the Delek board last week and will hold his seat until the company's 2016 annual meeting.
One of the biggest names in the global hedge fund industry likes the look of Delek US Holdings. In a filing with the Securities and Exchange Commision, the managers at Citadel say they now own 5.6 percent of Brentwood-based Delek, which last month said it planned to buy nearly half of Texas-based Alon USA Energy. Chicago-based Citadel, which manages $25 billion in capital, becomes the seventh entity to hold at least 5 percent of Delek.
Shares of Delek (Ticker: DK) are up about 1 percent this morning to $35.75. So far this year, they've climbed about 30 percent.
RBC Capital Markets analyst Paul Quinn has boosted his rating on shares of Louisiana-Pacific to 'sector perform' from 'underperform,' citing a positive outlook for the price of oriented strand board because of limited inventory coming to market soon. But Quinn's price target of $15 is still about 8 percent below where LP (Ticker: LPX) ended Monday's session.
Over at Goldman Sachs, analyst Neil Mehta has gone the other way with shares of Delek US Holdings and a number of other oil refiners, cutting them from 'buy' to 'neutral.' Mehta now has a price target of $43 on Delek, which has climbed about 40 percent year to date. His call helped take Delek down almost 5 percent Monday, with shares (Ticker: DK) closing at $37.80.
"While we recognize further upside may exist from restructuring/M&A optionality at DK: (1) risk/reward appears more balanced after share price strength and (2) we expect WTI-Midland differentials will stay compressed with new pipeline capacity additions," the analysts explained.
Delek Logistics Partners will pay almost $62 million to Delek US Holdings, aka The Mothership, for a storage tank at Delek US' refinery in Tyler, Texas, and some unloading racks at its Arkansas plant. The acquisition will add $6.7 million annually to Delek Logistics' EBITDA, which Chairman and CEO Uzi Yemin wants to get to $150 million by year's end. Check out more details here.
Mizuho hospitals analyst Ann Hynes has lowered her rating for shares of LifePoint Hospitals to 'neutral' from 'buy.' Her target for the Brentwood-based company, which opened trading this morning (Ticker: LPNT) at $74.47, is $76.60.
Analysts at Cowen like the prospects of the oil refining group despite the impact of low crude oil prices on other parts of the energy sector. Margins remain strong and summer travel should provide plenty of demand, they say, leading them to lift their estimates on a number of industry players, including Delek US Holdings. They have Brentwood-based Delek (Ticker: DK) climbing to $43 in the coming year from its current levels of about $39.
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