Oil refiner and marketer Phillips 66 (
) on Monday saw its coverage initiated with an "Outperform" rating
by analysts at Oppenheimer.
The firm also set a $42 price target on PSX, suggesting a 20%
upside to the stock's Friday closing price of $34.94.
An Oppenheimer analyst commented, "PSX, which was spun off on
May 1 from COP, is an integrated downstream company with a leading
position in all of its three business segments: Refining &
Marketing, Gas Gathering & Processing, and Petrochemicals.
PSX's business strategy is to de-emphasize refining, while
aggressively expanding its two other businesses, maximizing return
on capital by investing in profitable growth and controlling costs.
The company intends to grow its cash dividend and repurchase its
shares, while maintaining strong financial flexibility. We believe
this unique asset mix, large scale and balanced operations give PSX
a competitive advantage throughout the business cycle."
Phillips 66 shares were unchanged in premarket trading
The Bottom Line
Shares of Phillips 66 (
) have a 2.29% dividend yield, based on Friday's closing stock
price of $34.94. The stock has technical support in the $28-$30
price area. If the shares can firm up, we see overhead resistance
around the $37 price level.
Phillips 66 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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