Analyst Recommendations for Phillips 66 after Its 1Q16 Earnings

Phillips 66's 1Q16 Earnings Miss the Estimates

(Continued from Prior Part)

Analyst recommendations for Phillips 66

In this series, we’ve examined Phillips 66’s (PSX) 1Q16 results, segment analysis, stock performance, and capital expenditure position. In this part, we’ll examine the ratings of analysts covering the stock.

The above table shows that four of the nine companies have rated Phillips 66 (PSX) as “buy,” “overweight,” or “outperform.” Five companies have rated Phillips 66 as a “hold.” The highest 12-month price target for PSX stands at $97, indicating an 18% rise from current levels. The average 12-month price target for PSX stands at $86, indicating a 5% rise from current levels.

None of the firms have given “sell” rating to Phillips 66. PSX’s lowest 12-month price target stands at $68, implying a 17% fall from current levels.

The highest price target for PSX was set by Barclays, and the lowest price target was set by Piper Jaffray. Cowen, Raymond James, and Scotia Howard Weil gave it price targets equal to or exceeding $90 per share. Wolfe Research, RBC Capital Markets, and J.P. Morgan gave “sector perform,” “neutral,” or “peer perform” recommendations on the stock.

PSX’s peers’ analysts’ ratings

Phillips 66’s peers PBF Energy (PBF), Valero Energy (VLO), and Western Refining (WNR) have been rated as “buys” by 67%, 76%, and 43% of analysts, respectively.

If you’re looking for exposure to refining sector stocks, you can consider the iShares North American Natural Resources ETF (IGE). This ETF has PSX, VLO, and TSO in its portfolio. IGE has ~8% exposure to refining and marketing sector stocks.

Browse this series on Market Realist:

• Part 1 - Phillips 66’s 1Q16 Earnings Are Lower than Estimated

• Part 2 - Phillips 66’s Segments in 1Q16: Refining Earnings Plunge

• Part 3 - Phillips 66’s Stock Fell by 6.5% on Its 1Q16 Earnings Release