Credit Suisse Reiterates Outperform, Raises PT On Phillips 66 On Positive Outlook

In a report published Monday, Credit Suisse analyst Edward Westlake reiterated an Outperform rating on

, and raised the price target from $85.00 to $100.00. In the report, Credit Suisse noted, "PSX shares underperformed the sector late last year on the oil sensitivity of its mid-stream (and possibly chemicals) business. Relative underperformance vs pure play refiner peers could continue in 1H15 given refining fundamentals are going to drive earnings upgrades this year. PSX is less levered to refining. However, management has come out fighting. We're not sure the market has noticed quite yet. In recent presentations, available on their webpage, PSX has released new slides with three simple messages. (1) Management are going to be assertive with an implied $2bn per annum of MLP drops. (2) EBITDA will grow substantially. Excluding drops, mid-cycle EBITDA could grow to over $9bn. (3) If one uses a reasonable multiple for PSX of 7x then EV should grow to over $60bn. The current EV is $46bn – go figure. We raise our TP to $100/sh." Phillips 66 closed on Friday at $75.36.