Delek US Holdings, Inc. (DK)

[eFinanceMarkets]

$DK Delek US Holdings (DK +2.1%) is upgraded to Overweight from Equal Weight with a $44 price target, raised from $34, while refining peer PBF Energy (PBF -0.4%) is downgraded to Underweight from Equal Weight with a $37 target, up from $30, at Morgan Stanley.

The firm's upgrade of DK comes on the basis of the stock's valuation, locational advantage, meaningful MLP exposure and positioning for higher cash returns to shareholders.

In its PBF downgrade, Stanley cites earnings achievability risk given that 85% of the company's EBITDA is driven by refining, and the firm thinks PBF's logistics/MLP business has a lower growth outlook than peers.

Now read: PBF Logistics: Cheap For A Reason »