UPDATE: Credit Suisse Upgrades Phillips 66 As Oil Weakness Creates Entry Point

In a report published Monday, Credit Suisse analyst Edward Westlake upgraded the rating on

from Neutral to Outperform, and reiterated the $95.00 price target. In the report, Credit Suisse noted, “PSX shares have underperformed peers on a correct market view that falling oil prices would impact near term earnings at the PSX chemical business and some of its midstream assets. We lower near term 2015 EPS by 7%. However, this near term noise creates an entry point. Lower front end oil prices do not affect our longer term forecasts which were based around $80/bbl WTI nor do they affect management's ability to build a significantly larger and higher multiple business in a few years while at the same time returning cash to shareholders (2.8% yield). Indeed, if you believe DOW, then polyethylene margin expansion could mean our chemical cuts are too harsh. Clearly we're no longer at $30/sh when some suggested PSX looked like VLO (it does not), but our medium term share price target is $112/sh and 12mth target is $95/sh. The market seems to have over-reacted and so we are upgrading PSX to Outperform from Neutral.” Phillips 66 closed on Friday at $71.78.