On Tuesday, Delek Logistics Partners, LP (NYSE:DKL) received an upgrade from Raymond James, shifting from a Market Perform rating to Outperform. The firm also set a new price target for the stock at $45.00. This adjustment comes as Delek Logistics' shares are trading near the lower end of a range not seen in over three years, presenting what the firm sees as an attractive valuation.
The upgrade reflects a significant change from the stock's previous high of over $60 per unit in September to a recent trading value near $40 per unit. The analyst at Raymond James highlighted the improved risk/reward balance due to the lower valuation and noted the potential for upside from possible catalysts in the future.
Raymond James emphasized that the decision to raise the rating is based on an opportunistic approach, considering the stock's current position in the market. The firm believes that Delek Logistics' current trading price offers an entry point that could benefit investors, given the stock's historical performance and potential for growth.
The analyst's commentary provided insight into the rationale behind the upgrade, citing a more attractive valuation as a key factor. The potential catalysts that could positively impact the stock were also mentioned, although specifics were not disclosed in the provided context.
The new price target of $45.00 suggests a level of confidence from Raymond James in Delek Logistics' ability to recover from its recent lows. This target represents a notable increase from the stock's recent trading prices and suggests a positive outlook for the company's financial performance going forward.
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