Analyst Joe Laetsch from Morgan Stanley maintained a Hold rating on Phillips 66 and keeping the price target at $122.00.
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Joe Laetsch has given his Hold rating due to a combination of factors impacting Phillips 66’s performance. The refining segment is showing improvement with a significant increase in the refining indicator and reduced turnaround activity, which is expected to enhance results. However, the Chemicals segment faces challenges due to softer margins and maintenance issues, which could weigh on earnings.
In the Midstream segment, earnings are anticipated to rise due to higher volumes, although some gains may be offset by unfavorable conditions. Marketing and Specialty are expected to see earnings improvement towards historical levels, while Renewable Fuels benefits from a rise in the benchmark indicator and additional tax credits. Despite these positive aspects, the overall mixed performance across segments justifies a Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $127.00 price target.