UBS fuels Delek rise

Delek, is 74%-owned by Yitchak Tshuva, though Wolf believes a recent sale of a 2.8% stake by Tshuva could boost liquidity.

By SUSAN LERNER
January 10, 2006 07:17
1 minute read.
delek english logo 88

delek english logo 88. (photo credit: )

Shares of Delek Group rose 1.4 percent to NIS 713.80 Monday fueled by comments from UBS analyst Joseph Wolf, who initiated coverage of the stock with a "buy" recommendation and a NIS 820 price target. "We see three reasons to own the stock: Exposure to the Israeli economy, exposure to a successful management team; and underappreciated value of privately held assets, especially the US fuel business," Wolf wrote in a note to clients. "We see significant upside potential in the US fuel operations as investors become more familiar with the opportunity there. We also like the positioning of the auto and real estate holdings," Wolf said. The company, he noted, is active in the energy, automotive, real estate, fuel operations, biochemical, and telecommunications sectors, and also recently entered the financial services segment in Israel. Delek, is 74%-owned by Yitchak Tshuva, though Wolf believes a recent sale of a 2.8% stake by Tshuva could boost liquidity. Although public holdings account for 88% of market cap, Wolf said he sees upside coming from non-public assets.



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