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.
Avondale Partners analyst Richard Close says investors should jump at the chance to pick up shares of HealthStream after they took an 11 percent lickin' Thursday (Ticker: HSTM) following the company's Q4 report and issuance of 2015 guidance. That guidance of a drop in net income of about a third will scare off some investors, Close said, but it should turn out to be on the conservative side as the company reaps the rewards of various investments. Sticking to his 'market outperform' target and $33 target, Close told clients Thursday that HealthStream "has built an extremely valuable platform and product additions can help sustain steady growth [...] We would get more aggressive on a meaningful pullback."
Over at Deutsche Bank, analysts Ryan Todd and Igor Grinman are nowhere near as bullish on the prospects of Delek US Holdings. They say the Brentwood-based owner of refineries in East Texas and Arkansas is at a relative disadvantage to some competitors and have trimmed their price target to $37 from $40. Delek (Ticker: DK) closed Thursday trading at $32.95.
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