In a report released yesterday, Joe Laetsch from Morgan Stanley maintained a Hold rating on Phillips 66, with a price target of $128.00.
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Joe Laetsch has given his Hold rating due to a combination of factors surrounding Phillips 66’s strategic initiatives and financial outlook. The Sweeny complex, which integrates refining, midstream, and CPChem operations, showcases the company’s strategy to maximize value and optimize product flow. This integration is complemented by a significant expansion of the commercial organization, which focuses on asset-backed trading to enhance margins across various segments, including refining, NGLs, chemicals, and renewable fuels.
Despite these strategic advancements, Laetsch notes that management’s overarching strategy remains consistent, emphasizing improvements in refining operations, organic growth in midstream and chemicals earnings, and a commitment to returning over 50% of cash flow from operations to shareholders. Additionally, the company aims to reduce leverage to $17 billion by 2027. These factors collectively contribute to the Hold rating, as they present a balanced view of potential growth and existing commitments.
In another report released yesterday, Mizuho Securities also reiterated a Hold rating on the stock with a $142.00 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.