UPDATE: Deutsche Bank Initiates Coverage on Phillips 66

According to a research report published this morning, Deutsche Bank has initiated Phillips 66

with a Hold rating and $37 PT. In the report, Deutsche Bank said, "To anybody who is still unaware of the mega-shifts underway in US oil markets, witness the acquisition of century-old Sunoco by a natural gas pipeline company, the day before an Oklahoma refining name starts trading as a standalone company using an 85 year old brand. Although we see this as a premium refiner to direct comp Valero, with NGL gathering & chemicals growth and an MLP kicker, we have a cautious 12 month view on refining, and with valuation on the When-Issued stock looking generous at 4.5x 2013e EBITDA vs the independent refining group at 3.8x, 8.2x P/E vs group at 7.9x P/E, we struggle to find 20%+ upside, and initiate with HOLD and a $37 PT."