Phillips 66: Buy Rating Amid Activism and Strategic Restructuring Potential

TD Cowen analyst Jason Gabelman has maintained their bullish stance on PSX stock, giving a Buy rating on April 30.

Jason Gabelman has given his Buy rating due to a combination of factors related to Phillips 66’s current corporate dynamics and potential restructuring outcomes. He acknowledges the ongoing activism campaign led by Elliott, which is pushing for changes in corporate governance and structure. While Gabelman agrees with some of Elliott’s points, particularly regarding governance, he sees potential in Phillips 66’s operational execution and capital allocation strategies.
Despite the uncertainties surrounding the possible outcomes of the activism, Gabelman believes that the company’s strategic moves, such as the Midstream M&A, could lead to favorable long-term results. He recognizes that while there are competing priorities within the company, the potential for improved governance and strategic restructuring could enhance shareholder value. This balanced view of the company’s prospects underpins his Buy rating for Phillips 66’s stock.

In another report released on April 30, Wells Fargo also reiterated a Buy rating on the stock with a $149.00 price target.