TD Cowen upgrades Delek US Holdings to 'hold', raises PT

TD Cowen upgrades rating on oil refiner Delek US Holdings DK.N to "hold" from "sell" and raises price target to $28 from $15

Still, the new price target represents a nearly 13% downside to the stock's last close

Brokerage says the change in rating reflects small refinery exemptions (SREs) awarded to DK and reasonable confidence in similar SREs at least through 2027

"We also expect DK to benefit from crude market structure flipping to contango" - brokerage

TD Cowen expects the refining margin environment to remain supportive over the next 6 to 12 months

3 of 13 brokerages rate the stock "buy" or higher, 8 "hold" and 2 "sell" or lower; median PT is $29 - data compiled by LSEG

Up till last close, stock up 73.6% YTD