
DKL Stock Forecast & Price Target
DKL Analyst Ratings
Bulls say
Delek Logistics Partners LP has demonstrated a strong track record of distribution growth, achieving 44 consecutive quarters of increases, with a recent rise to $1.055 per unit, translating to an attractive yield exceeding 11%. The company's forecast indicates robust growth in gross profits from its Gathering and Processing segment, anticipated to rise by 6% and 12% in 2024 and 2025 respectively, supported by an expected increase in market share and volume. Furthermore, operational efficiencies and an anticipated rise in distribution rates, alongside the advantageous positioning in the active Delaware Basin, signal significant potential for value appreciation in the company’s units.
Bears say
Delek Logistics Partners LP is facing a negative outlook due to its relatively high leverage ratio of approximately 4.5x, which exceeds the peer average of 4.3x and raises concerns regarding its ability to sustainably expand its infrastructure. The company's discounted cash flow (DCF) coverage ratio is projected at around 1.5x, significantly lower than the peer average of 3.0x, indicating a lack of certainty regarding distribution payments during times of financial strain. Additionally, the company's financial health may be impacted by external factors, such as declining oil and natural gas prices, as well as potential risks stemming from its relationship with Delek Holdings.
This aggregate rating is based on analysts' research of Delek Logistics Partners and is not a guaranteed prediction by Public.com or investment advice.
DKL Analyst Forecast & Price Prediction
Start investing in DKL
Order type
Buy in
Order amount
Est. shares
0 shares