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Investing.com - Mizuho (NYSE:MFG) raised its price target on Phillips 66 (NYSE:PSX) to $140.00 from $138.00 on Thursday, while maintaining a Neutral rating on the stock. Currently trading at $130.51, the $53.2 billion market cap refiner shows potential upside according to InvestingPro Fair Value metrics, with analyst targets ranging from $110 to $156.
The research firm expects Phillips 66 to show significant sequential earnings improvement in the second quarter of 2025, driven primarily by the company’s Refining segment.
Mizuho attributes the anticipated improvement to stronger indicator margins, higher volumes, and better margin capture following the completion of heavy turnaround work that occurred in the first quarter of 2025.
Despite the positive outlook, Mizuho models small misses for Phillips 66’s second-quarter 2025 results compared to current consensus estimates, projecting EBITDA 1% below consensus and EPS 3% below consensus.
The firm adjusted its price target after fine-tuning near-term margin and cost assumptions, but maintained its Neutral rating, citing "higher upside elsewhere" in its Oil & Gas coverage universe.
In other recent news, Phillips 66 has been highlighted by Evercore ISI, which initiated coverage with an outperform rating, citing the company’s strategic transformation and strong portfolio. Evercore noted recent acquisitions, such as DCP and EPIC, have bolstered Phillips 66’s midstream integration, enhancing its business model. Despite a current trading discount compared to peers, the firm anticipates improvements in refining capture rates and cost control to narrow this gap. In governance developments, Phillips 66’s Annual Meeting saw the election of two new directors nominated by Elliott Management, signaling investor demand for change. This board shakeup resulted in John E. Lowe and Howard Ungerleider not being re-elected. Elliott Investment Management emphasized that the election of their nominees, Sigmund Cornelius and Michael Heim, represents a push for meaningful change within the company. Shareholders also rejected a management proposal to declassify the board, while supporting an advisory vote on executive compensation. The appointment of Ernst & Young LLP as the independent accounting firm was ratified, and a proposal for annual director resignations was not approved.
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