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Phillips 66 downgraded to Neutral at BofA on ‘dimmer’ NGL outlook

BofA downgraded Phillips 66 (PSX) to Neutral from Buy with a price target of $147, up from $144. The firm still sees sum-of-the-parts value embedded in their midstream, but the natural gas liquids outlook has “grown dimmer” this year with less U.S. liquids growth expected and downstream overbuild beginning, the analyst tells investors. In addition, the chemicals outlook has “dampened considerably,” the analyst says.

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