
Phillips 66 (PSX) Stock Forecast & Price Target
Phillips 66 (PSX) Analyst Ratings
Bulls say
Phillips 66 is well-positioned for long-term growth with expectations of approximately $1.0 billion in Midstream and Chemicals EBITDA expansion by 2027, backed by strong marketing performance that exceeded projections. A strategic shift towards a higher equity volume supply, which is anticipated to rise from 30% to about 40% in the next 18 months, coupled with a solid foundation of long-term contracts for third-party volumes, reinforces confidence in revenue stability. Additionally, anticipated strong performance in the fourth quarter, driven by favorable market conditions such as improved crude differentials and robust jet fuel pricing, adds to the positive outlook for Phillips 66's financial health and growth trajectory.
Bears say
The financial outlook for Phillips 66 appears negative due to several key factors, including a decline in midstream performance, which reported operating income of $697 million, indicating a decrease compared to previous quarters. Additionally, risks related to narrower sweet/sour differentials and product cracks, alongside diminished expectations for IMO tailwinds, suggest a challenging environment for refining margins. Lastly, a significant working capital headwind of $742 million has negatively impacted share buyback initiatives and resulted in increased debt by $0.8 billion, further complicating the company's financial stability.
This aggregate rating is based on analysts' research of Phillips 66 and is not a guaranteed prediction by Public.com or investment advice.
Phillips 66 (PSX) Analyst Forecast & Price Prediction
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