In a report released today, Phillip Jungwirth from BMO Capital maintained a Buy rating on Phillips 66, with a price target of $152.00.
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Phillip Jungwirth has given his Buy rating due to a combination of factors that highlight Phillips 66’s strategic positioning and growth potential. The company’s integrated asset footprint, particularly showcased during the Sweeny Tour, underscores its commitment to refining, midstream, and chemical synergies. Management’s focus on enhancing refining competitiveness and expanding the NGL value chain is evident, alongside executing major projects and maintaining competitiveness in CPChem. These efforts are expected to drive value across the portfolio.
Moreover, Phillips 66’s midstream business is positioned for significant growth, with a target of reaching $4.5 billion in EBITDA by 2027. The EPIC acquisition and plans for further expansion in fractionation and gas processing plants contribute to a stable and growing earnings outlook. Additionally, the company’s commercial operations, including a robust trading floor, enhance margins and provide a competitive edge. The Outperform rating reflects the stock’s attractive valuation, with a discount to its sum-of-the-parts value and historical multiples, despite its exposure to higher multiple businesses.
In another report released on September 22, UBS also maintained a Buy rating on the stock with a $150.00 price target.
Based on the recent corporate insider activity of 65 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PSX in relation to earlier this year.