UPDATE: Deutsche Bank Upgrades Phillips 66 on Bullish 2014 Outlook
In a report published Monday, Deutsche Bank analyst Paul Sankey upgraded the rating on Phillips 66 (NYSE: PSX) from Hold to Buy, and raised the price target from $64.00 to $80.00.
In the report, Deutsche Bank noted, “Since our ‘Diamond Age' (Oct 2010) refining upgrade, & subsequent ‘Future of US Oil' series, broadly speaking our roadmap of market development has been followed, but faster than we anticipated. First phase, the stunning production growth in natural gas and light sweet oil, giving US refiners a huge competitive advantage and oil product export growth. That is a long-term secular bull story. The second, interim phase of infrastructure bottlenecks and de-bottlenecking added super-super normal profit and volatility. We are in the third phase, of outright over-supply of light sweet crude & the limitation of the crude export ban. Target $30/bbl Brent-WTI. Upgrade PSX, VLO, DK, ALJ.”
Phillips 66 closed on Friday at $71.24.
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