Goldman Sachs upgraded Delek US (NYSE: DK) to Buy from Neutral, assigning a $55.00 price target, based on expectations for improved free cash flow generation.
The firm’s more positive outlook was supported by several factors, including internal cost-reduction initiatives, anticipated benefits from small refinery exemptions, enhancements in marketing and wholesale strategies, and stable growth in the company’s logistics segment.
Goldman estimated that Delek could generate approximately $180 million in free cash flow in 2026, assuming partial SRE credits are realized.
The firm indicated that this improved cash generation could support additional share repurchases and ongoing internal investment initiatives, ultimately strengthening long-term cash flow prospects.
