Gold prices bounce off 3-week lows; demand likely longer term
Investing.com - UBS raised its price target on Phillips 66 (NYSE:PSX) to $143.00 from $141.00 on Monday, while maintaining a Buy rating on the stock. Currently trading at $127.24 with a market capitalization of $51.8 billion, PSX remains slightly undervalued according to InvestingPro analysis.
The price target adjustment follows Phillips 66’s quarterly earnings report, which UBS noted demonstrated the company’s "competitive business model" and showed that operational changes have "finally started to show results." The company maintains solid financial metrics with a 10% gross profit margin and a healthy 3.84% dividend yield.
UBS revised its 2025 earnings per share estimate for Phillips 66 to $5.00 from $3.99, reflecting both the second-quarter earnings beat and a stronger crack spread environment.
The firm highlighted that both Phillips 66’s refining and Marketing and Specialties (M&S) segments performed "well ahead" of expectations in the second quarter of 2025.
UBS’s new $143 price target is based on a 9.0x multiple applied to its calendar year 2026 EBITDA estimate of $8,355 million, less net debt and non-controlling interests.
In other recent news, Phillips 66 reported robust earnings for the second quarter of 2025, highlighting strong refining utilization and strategic shareholder returns. The company posted adjusted earnings of $973 million, or $2.38 per share, along with an operating cash flow of $1.9 billion, excluding working capital. This performance underscores Phillips 66’s operational efficiency and strategic initiatives. Additionally, TD Cowen raised its price target for Phillips 66 to $134, up from $130, while maintaining a Buy rating. This adjustment follows the company’s strong refining performance and its lowest operational expenses since 2021. These developments reflect positive momentum for Phillips 66 in the energy sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.