UPDATE: Goldman Sachs Initiates Coverage on Phillips 66

According to a research report published this morning, Goldman Sachs has initiated Phillips 66

with a Neutral rating and $39 PT. In the report, Goldman Sachs said, "Within our refining coverage, we continue to prefer Mid-Continent-focused peers that show even greater upside such as Buy-rated HollyFrontier (CL) and Western Refining, with MidCon comprising only a portion of PSX's asset base. We view PSX's exposure to midstream and chemicals assets, each of which is housed in a 50/50 JV, as favorably differentiating it from other diversified refiners, though the lack of a controlling interest could keep PSX from getting full credit." Phillips 66 closed yesterday at $32.49.