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Do Wall Street Analysts Like Phillips 66?


Aug. 6 2018, Updated 3:39 p.m. ET

Analysts’ opinions on Phillips 66

Phillips 66 (PSX) is covered by 17 Wall Street analysts. The analyst rating chart below shows that seven (or 41%) analysts gave “buy” or “strong buy” ratings on the stock. Eight analysts (or 47%) gave PSX a “hold” rating, which could be due to Phillips 66’s high valuations. Two analysts gave “sell” or “strong sell” ratings on the stock. PSX’s mean price target of $126.00 per share implies an ~3.0% gain from its current price.

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Do Wall Street analysts like PSX?

PSX stock has risen steeply in the last year with a 41.0% increase, and it trades at a premium to its peer average. PSX trades at a forward PE (price-to-earnings) multiple of 14.0x above the peer average of 11.2x of American refiners.

However, PSX also has 41.0% “buy” ratings, which could be due to its financial strength and growth activities. PSX has a comfortable debt and liquidity position, which we’ll discuss in the next two parts. 

PSX also has expansion projects in its Midstream and Chemicals segments, as well as modernization projects in its Refining segment. We’ll consider these topics in Part 4 of this series. The company has diversified its earnings model, discussed in Part 5 of this series.

Overall, Wall Street analysts appear to appreciate PSX’s financials and expansion plans but have mixed opinions due to the stock’s premium valuation.

Analysts’ ratings of PSX’s peers

Among PSX’s peers, Marathon Petroleum (MPC), Valero Energy (VLO), and Andeavor (ANDV) have been rated as a “buy” by 92.0%, 71.0%, and 23.0% of analysts, respectively. Delek US Holdings (DK), PBF Energy (PBF), and HollyFrontier (HFC) were rated as a “buy” by 92.0%, 43.0%, and 33.0% of analysts, respectively.


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