Wolfe Research Upgrades Phillips 66 Outlook to Outperform

Wolfe Research has upgraded Phillips 66's outlook from Peer Perform to Outperform. The projected price target suggests a potential 28.11% upside from the current price. However, projected revenue indicates a decrease of 9.65%, which may impact investor sentiment.

Date: 04-01-2025

AI Rating: 5

Upgrade in Outlook

The recent report indicates that Wolfe Research has upgraded their outlook for Phillips 66 to 'Outperform'. This is a positive indication for investors, as such upgrades typically reflect expected performance improvements.

Analyst Price Forecast

Analysts have set an average price target of 146.95 GBX/share for Phillips 66, suggesting a potential upside of 28.11% from the latest reported closing price of 114.70 GBX/share. This outlook could stimulate buying interest among investors due to the anticipated price increase.

Projected Revenue Decline

Despite the positive analyst upgrade, the projected annual revenue for Phillips 66 is estimated at 133,487MM, which marks a significant decrease of 9.65%. This factor could raise concerns among investors about the company's growth prospects and potential profitability issues moving forward.

EPS and Institutional Holdings

The projected non-GAAP EPS is reported to be 11.55. While EPS figures are crucial for assessing profitability, no growth or decline in EPS is mentioned, leaving questions about the overall financial health of the company.

Investor sentiment may tighten due to the noted decrease in institutional ownership by 39 funds or 1.42%. While the portfolio weight of all funds increased by 14.31%, the overall trend of decreasing shares may reflect cautious sentiment amongst large investors.

Additionally, the decrease in shares held by major funds like Wells Fargo, Vanguard, and the Energy Select Sector SPDR Fund may further signal concern regarding Phillips 66’s future performance among key stakeholders.

Stocks: PSX