A Closer Look at 5 Analyst Recommendations For Phillips 66

Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Phillips 66 PSX in the last three months.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $153.2, a high estimate of $169.00, and a low estimate of $139.00. Observing a 6.98% increase, the current average has risen from the previous average price target of $143.20.

Breaking Down Analyst Ratings: A Detailed Examination

A comprehensive examination of how financial experts perceive Phillips 66 is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Phillips 66. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Phillips 66 compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Phillips 66's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Phillips 66's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Phillips 66 analyst ratings.

Delving into Phillips 66's Background

Phillips 66 is an independent refiner with 12 refineries that have a total crude throughput capacity of 1.8 million barrels per day, or mmb/d. In 2023, the Rodeo, California, facility ceased operations and be converted to produce renewable diesel. The midstream segment comprises extensive transportation and NGL processing assets and includes DCP Midstream, which holds 600 mbd of NGL fractionation and 22,000 miles of pipeline. Its CPChem chemical joint venture operates facilities in the United States and the Middle East and primarily produces olefins and polyolefins.

Unraveling the Financial Story of Phillips 66

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Decline in Revenue: Over the 3 months period, Phillips 66 faced challenges, resulting in a decline of approximately -4.99% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Energy sector.

Net Margin: Phillips 66's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.28% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Phillips 66's ROE excels beyond industry benchmarks, reaching 4.09%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Phillips 66's ROA excels beyond industry benchmarks, reaching 1.64%. This signifies efficient management of assets and strong financial health.

Debt Management: Phillips 66's debt-to-equity ratio is below the industry average. With a ratio of 0.63, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.