Phillips 66 Started as an “Outperform” at Oppenheimer; Sees Several Catalysts (PSX)

By Staff,

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Oil refiner and marketer Phillips 66 ( PSX ) 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 Monday.

The Bottom Line
Shares of Phillips 66 ( PSX ) 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 ( PSX ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: PSX

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