Reasons for Investors to Hold onto Delek US Holdings Stock
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Company Overview: Delek US Holdings, Inc. is a key player in the U.S. downstream energy market, focusing on refining crude oil and managing logistics, with a notable 67% increase in share price over the past year, outperforming industry peers.
Financial Strength and Performance: The company boasts a strong standalone balance sheet with significant cash reserves and low net debt, alongside record throughput levels in its refining segment, contributing to a doubling of adjusted EBITDA year-over-year.
Capital Returns and Strategic Initiatives: Delek has shown a commitment to returning capital to shareholders through dividends and stock buybacks, while also making strides in unlocking midstream asset value through strategic restructuring.
Market Risks and Challenges: Despite its strengths, Delek faces risks from commodity price volatility, high consolidated debt, intense industry competition, and long-term demand threats from the transition to renewable energy, suggesting a cautious approach for potential investors.
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Analyst Views on MPC
Wall Street analysts forecast MPC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MPC is 201.50 USD with a low forecast of 184.00 USD and a high forecast of 213.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 172.010
Low
184.00
Averages
201.50
High
213.00
Current: 172.010
Low
184.00
Averages
201.50
High
213.00
About MPC
Marathon Petroleum Corporation is an integrated, downstream energy company. The Company’s segments include Refining & Marketing, Midstream and Renewable Diesel. The Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast, Mid-Continent and West Coast regions of the United States. It sells refined products to wholesale marketing customers domestically and internationally, to buyers on the spot market, and to independent entrepreneurs who operate primarily Marathon branded outlets. The Midstream segment gathers, transports, stores and distributes crude oil, refined products, including renewable diesel, and other hydrocarbon-based products, principally for the Refining & Marketing segment via refining logistics assets, pipelines, terminals, and others. The Renewable Diesel segment processes renewable feedstocks into renewable diesel, markets renewable diesel and distributes renewable products through its Midstream segment and third parties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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