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Investing.com - TD Cowen raised its price target on Phillips 66 (NYSE:PSX) to $134.00 from $130.00 on Monday, while maintaining a Buy rating on the $50.92 billion energy company’s stock. The new target sits within the broader analyst range of $121-$159, with InvestingPro analysis suggesting the stock is currently slightly undervalued.
The price target increase follows Phillips 66’s strong refining performance in its latest quarterly results, with the company reporting its lowest operational expenses since 2021. With annual revenues of $132.97 billion and a Financial Health Score of ’FAIR’ according to InvestingPro, the company demonstrates solid operational fundamentals.
TD Cowen noted that Phillips 66 has identified a pathway to reduce its leverage through working capital reversals and announced asset sales, though investors may want to see additional strong quarterly performances before adopting a more optimistic outlook.
The research firm reduced its estimated refining operational expenditure estimates for Phillips 66 following the company’s cost-efficiency improvements, which directly contributed to the $4 per share increase in the price target.
Phillips 66, a diversified energy manufacturing and logistics company, continues to maintain a Buy rating from TD Cowen based on its recent financial performance and operational improvements.
In other recent news, Phillips 66 reported robust earnings for the second quarter of 2025, driven by high refining utilization and strategic shareholder returns. The company posted adjusted earnings of $973 million, or $2.38 per share, alongside an operating cash flow of $1.9 billion, excluding working capital. These results highlight Phillips 66’s strong operational efficiency and strategic initiatives. Despite the absence of specific forecast data, the company’s performance reflects its solid financial standing. There were no mergers or acquisitions announced during this period. Additionally, no analyst upgrades or downgrades were reported for Phillips 66. These developments provide a factual overview of the company’s recent financial activities and strategic direction.
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