Analyst ratings for Phillips 66
Phillips 66 (PSX) is currently rated by a total of 18 Wall Street analysts. Of the total, 12 analysts have assigned a “buy” or “strong buy” rating, six have assigned a “hold” rating, and the stock doesn’t have any “sell” or “strong sell” ratings. Phillips 66’s mean target price stands at $120 per share, which implies a 27% gain from the current level.
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Phillips 66 posted a weak set of numbers in Q1 2019. The company’s adjusted earnings fell 63% to $0.2 billion. However, this was in line with the performance of peers in the industry. Also, usually, the first quarter is a weaker period for refiners.
Further, Phillips 66’s adjusted EPS surpassed Wall Street analysts’ estimate for the quarter. Also, the company’s Midstream earnings rose despite the fall in other segment’s earnings, reflecting the strength of Phillips 66’s (PSX) integrated and diversified business model.
Moreover, Phillips 66’s total debt-to-total capital ratio stood at 30% in Q1 2019, lower than the peer average of American refiners, a favorable scenario for the company. Thus, Phillips 66 has many “buy” ratings likely due to its robust financials.
But Phillips 66 also has many “hold” ratings, presumably due to the premium valuations that the stock commands. Phillips 66 stock trades at 10.9x its forward PE, above the peer average of 10.1x.
Analyst ratings for peers
Phillips 66’s peers Delek US Holdings (DK), Valero Energy (VLO), and Marathon Petroleum (MPC) have been rated a “buy” by 47%, 74%, and 100% of analysts, respectively. Other downstream players like HollyFrontier (HFC) and PBF Energy (PBF) have been rated a “buy” by 18% and 44% of analysts, respectively.