A Special Situation With 78% Upside Potential
A sum of the parts valuation suggests 78% upside. The reality may be even more.
Delek US has a clear path to upside: its stake in subsidiary DKL is worth more than its current market cap.
The company has publicly committed to unlocking that value, and executive appointments show Delek is serious.
Even beyond the sum of the parts case, there are multi-year tailwinds behind refinery profits as earnings normalize following record margins.
Delek US could move higher quickly with Q1 earnings due next month. The longer-term case looks attractive as well.