Analyst Manav Gupta from UBS maintained a Buy rating on Phillips 66 and increased the price target to $150.00 from $143.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Manav Gupta has given his Buy rating due to a combination of factors impacting Phillips 66’s market position. The global reduction in Russian petroleum exports, particularly diesel and gasoil, has created a tighter supply environment, which is beneficial for U.S. refiners like Phillips 66. This tightening supply is expected to support crack spreads, enhancing profitability for refiners.
Additionally, the increase in fuel oil exports from Russia, while not directly affecting U.S. markets, is likely to lower fuel oil prices globally. This situation presents an opportunity for Phillips 66 to optimize its refining operations, particularly at its Bayway facility, which is equipped to handle such shifts. Furthermore, Phillips 66’s recent acquisition of the remaining stake in WRB Refining LP positions the company to capitalize on these favorable market conditions, potentially boosting its refining margins and overall financial performance.
According to TipRanks, Gupta is a 4-star analyst with an average return of 5.2% and a 59.92% success rate. Gupta covers the Energy sector, focusing on stocks such as HF Sinclair Corporation, Hess Midstream Partners, and Kinder Morgan.
In another report released on September 19, TD Cowen also maintained a Buy rating on the stock with a $133.00 price target.