UBS Maintains Neutral on Delek Logistics Partners, Raises Price Target to $57
UBS analyst Manav Gupta maintains Delek Logistics Partners (NYSE:DKL) with a Neutral and raises the price target from $55 to $57.
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Filed: 2026-08-14 AccNo: 0001193125-26-352363 Size: 180 KB Item 7.01: Regulation FD Disclosure Item 9.01: Financial Statements and Exhibits
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UBS analyst Manav Gupta maintains Delek Logistics Partners (NYSE:DKL) with a Neutral and raises the price target from $55 to $57.
Delek US Holdings (DK) reported strong Q2 2026 results with adjusted net income of $343.9M and refining EBITDA of $566.2M, driven by improved crack spreads and operational efficiency. The company expects no refinery turnarounds in H2 2026, positioning it to maximize availability. With its Enterprise Optimization Plan targeting $220M in annual FCF improvement and midstream subsidiary Delek Logistics Partners providing recurring distributions, DK offers differentiated exposure to refining with structural cash-flow growth potential.
Delek Logistics Partners raised its quarterly dividend for the third time in 2026, marking its 54th consecutive quarterly increase. However, the company announced a dilutive 4 million-share offering at $50/share, causing a 13% stock decline. Despite the near-term headwind, the stock is up 17.2% year-to-date and now yields 7.7%, with management using proceeds to retire debt and progressing toward separation from parent company Delek US.