Gold prices jump to near 3-week high amid US shutdown progress
Investing.com - UBS has reiterated a Buy rating on Phillips 66 (NYSE:PSX) with a price target of $160.00, citing favorable market conditions and operational improvements. This target represents a 16% upside from the current price of $137.94. InvestingPro data shows Phillips 66 is trading below its Fair Value, with analysts setting targets ranging from $129 to $170.
The global crude market remains oversupplied, creating macro tailwinds for refiners like Phillips 66, according to UBS. Both gasoline and diesel markets are trending above seasonal averages and remain tight. This favorable environment has helped drive Phillips 66’s impressive 24.6% year-to-date price return.
UBS highlighted Phillips 66’s margin enhancement opportunities at its Borger and Wood River refineries through "quick hit projects," which the company can now pursue after gaining 100% ownership of these assets.
The investment firm noted that Phillips 66 plans to operate Wood River, Borger, and Ponca City as a regional system, with greater flexibility in crude selection for Borger and Wood River refineries.
UBS also referenced management discussions about the Western Gateway Pipeline project, expected to start up by 2029, which would enable Phillips 66 to supply approximately 200,000 barrels per day to Arizona and California markets from its Mid-Continent and Texas refineries.
In other recent news, Phillips 66 reported strong operational performance for the third quarter of 2025. The company’s adjusted earnings reached $1 billion, which translates to $2.52 per share. Additionally, Phillips 66 recorded an operating cash flow of $1.2 billion. These figures highlight significant achievements in refining and strategic acquisitions. Despite these robust earnings, Freedom Capital Markets downgraded Phillips 66’s stock rating from Buy to Hold. The research firm cited the stock’s substantial recent appreciation as the primary reason for the downgrade, even as it raised the price target to $138.00 from $127.00. These developments reflect the company’s current financial and market positioning.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.