
Phillips 66 (PSX) Stock Forecast & Price Target
Phillips 66 (PSX) Analyst Ratings
Bulls say
Phillips 66's stock outlook reflects strong performance metrics, with Marketing exceeding expectations at $477 million and a forecast for midstream and chemical segments to achieve approximately $1 billion in EBITDA growth by 2027. The company's strategic focus on increasing equity volumes, projected to rise from 30% to about 40% over the next 18 months, enhances revenue stability, particularly as a significant portion of third-party volumes is secured under long-term contracts. Additionally, strong results are anticipated in the fourth quarter, supported by favorable market conditions such as improved crude differentials and robust jet fuel pricing, underscoring the solid path towards achieving an estimated EBITDA growth from $4 billion to $4.5 billion by 2027.
Bears say
Phillips 66 reported weaker midstream performance, with operating income of $697 million, which fell short of expectations due to lower volumes, impacting share buybacks and resulting in a net debt increase of $0.8 billion amid a working capital headwind of $742 million. The refining segment, while achieving strong throughput of 1,825 kbpd at 99% utilization, experienced slight margin pressures due to narrowing sweet/sour differentials and reduced product cracks, which heightened the risk of diminished overall profitability. Additionally, concerns surrounding future margin contraction due to renegotiations on 10% of contracts and a depressed global product demand contribute to an ongoing negative outlook for Phillips 66's stock.
This aggregate rating is based on analysts' research of Phillips 66 and is not a guaranteed prediction by Public.com or investment advice.
Phillips 66 (PSX) Analyst Forecast & Price Prediction
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