Analyst Forecasts For Delek US Holdings, Inc. (NYSE:DK) Are Surging Higher

Delek US Holdings, Inc. (NYSE:DK) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Delek US Holdings from its nine analysts is for revenues of US$19b in 2022 which, if met, would be a solid 14% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 110% to US$8.63. Before this latest update, the analysts had been forecasting revenues of US$17b and earnings per share (EPS) of US$5.67 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Delek US Holdings

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$31.59, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Delek US Holdings analyst has a price target of US$47.00 per share, while the most pessimistic values it at US$23.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Delek US Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Delek US Holdings' growth to accelerate, with the forecast 31% annualised growth to the end of 2022 ranking favourably alongside historical growth of 9.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 5.1% annually. It seems obvious that as part of the brighter growth outlook, Delek US Holdings is expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Delek US Holdings could be a good candidate for more research.

Analysts are clearly in love with Delek US Holdings at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a weak balance sheet. You can learn more, and discover the 2 other concerns we've identified, for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.