UPDATE: Morgan Stanley Initiates Coverage on Phillips 66

According to a research report published this morning, Morgan Stanley has initiated Phillips 66 PSX with an Equal-weight rating and $40 PT. In the report, Morgan Stanley commented, "We estimate 73% of PSX earnings are exposed to secular growth businesses. We believe that the secular rise in North American crude oil production provides cost advantages for Mid-Con and Gulf Coast refining, US Chemicals, and need for further build out of US midstream infrastructure. Current strategy includes plan to increase advantaged feedstock at US refineries, and grow US chemicals and midstream asset base."