UPDATE: Citigroup Downgrades Phillips 66 to Neutral, Raises PT

In a report published Monday, Citigroup downgraded its rating on Phillips 66

from Buy to Neutral, but raised its price target from $40.00 to $49.00. Citigroup noted, “We are downgrading PSX to Neutral on valuation. We are raising our target price to $49 p/s following further disclosure by the company on its regional refining margin realizations. The further disclosure has resulted in us increasing our capture rates in the Gulf Coast and Atlantic basin. PSX continues to be one of the more defensive names in the refining group with a more diversified portfolio of assets. We continue to remain bullish on PSX's business segments but have simply run out of room in our target price.” Phillips 66 closed on Friday at $46.73.