Key Points
He now feels it's a buy.
He also upped his price target by 16%.
- 10 stocks we like better than Delek Us ›
Generally speaking, the U.S. stock market was frothy as the trading week kicked off. As ever, though, some titles were frothier than others; this certainly applied to Delek US Holdings (NYSE: DK), which saw its equity zoom almost 8% higher on a very bullish analyst change.
An exceptional exemption
The prognosticator behind the move was TD Cowen's Jason Gabelman, who upgraded his recommendation on Delek to buy from hold. He also raised his price target to $58 per share from $50.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
According to reports, Gabelman believes that investors have fully priced in Delek's refining operations. However, they are overlooking the company's small refinery exemptions, which exempt it from producing a certain percentage of renewable fuels (or from purchasing compliance credits in lieu of this requirement).
Additionally, the analyst waxed bullish about Delek's refining dynamics and its shrinking interest expenses. The latter in particular should positively affect the company's bottom line.
The war premium
I'd agree with Gabelman's assessment of Delek's under-the-radar advantage with the small refinery exemptions. I would also be bullish on the oil company's rather advantageous position as the Iran war drags on (although the latest news about potentially settling it is a development to be guarded about). I feel that this change in the recommendation is justified.
Should you buy stock in Delek Us right now?
Before you buy stock in Delek Us, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Delek Us wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 29, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
