Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Mizuho maintained its Neutral rating and $142.00 price target on Phillips 66 (NYSE:PSX) on Thursday, citing "mild disappointment" with the company’s third-quarter outlook. Currently trading at $131.30, the stock sits near analyst targets ranging from $129 to $170. According to InvestingPro analysis, Phillips 66 appears slightly undervalued based on its Fair Value estimate.
The investment firm’s revised third-quarter 2025 estimates show EBITDA approximately 3% above Street consensus, while EPS estimates are about 1% below consensus expectations. With a market capitalization of $53 billion and trailing twelve-month EBITDA of $3.8 billion, Mizuho noted that market expectations appear to be "well-adjusted" despite strong refining margin indicators.
Mizuho expects Phillips 66’s refining earnings to remain roughly in line with second-quarter 2025 results, primarily due to lower margin capture rates across various segments. These challenges include product differentials, crude market backwardation, secondary products, and production timing effects.
The firm had anticipated a recovery in Chemical margins that could partially offset these challenges, but reported this "didn’t materialize." Midstream operations are expected to remain roughly flat, while Marketing and Specialties is projected to revert to normal quarterly performance levels.
Mizuho maintained its NAV-based price target of $142 per share for Phillips 66, with the rating decision reflecting balanced risk-reward considerations in the current operating environment. With the next earnings report due on October 29 and an attractive dividend yield of 3.66%, investors can access deeper insights and additional ProTips through InvestingPro’s comprehensive research report.
In other recent news, Phillips 66 declared a quarterly dividend of $1.20 per share, payable on December 1, 2025, to shareholders of record as of November 17, 2025. The company is also moving forward with plans to idle its Los Angeles refinery by the end of 2025, having already received its final waterborne crude on September 30. Phillips 66 announced a $2 billion notes offering, consisting of $1 billion in 5.875% Series A Junior Subordinated Notes and $1 billion in 6.200% Series B Junior Subordinated Notes, both due in 2056. UBS has reaffirmed its Buy rating for Phillips 66, citing the company’s refining optimizations and full ownership of WRB assets. Meanwhile, Mizuho maintained a Neutral rating with a $142 price target, emphasizing the company’s "wellhead to water" strategy. These developments reflect Phillips 66’s ongoing efforts in refining, site redevelopment, and financial structuring.
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