Phillips 66 (PSX) Stock Rating Downgraded at Credit Suisse

Phillips 66 (PSX) stock was downgraded to 'neutral' from 'outperform' at Credit Suisse on Monday.
By Amanda Albright ,

NEW YORK (TheStreet) -- Phillips66 (PSX) - Get Report stock was downgraded to "neutral" from "outperform" at CreditSuisse on Monday. The firm set a price target of $105 on the stock.

Last week, the Houston-based energy company reported 2015 third quarter earnings of $2.90 per share, higher than analysts' expectations of $2.24 per share.

Phillips 66 is one of the best positioned U.S. refinery companies due to its exposure to growth in the natural gas and chemicals business, Credit Suisse said.

There is still a chance that "self-help" in the second half of 2016 to 2018 could drive EBITDA to more than $9 billion, Credit Suisse added.

"The challenge is a) the relative multiple suggests at least some of this self-help is priced in and b) there is greater refining leverage in other names if we're right on gasoline," Credit Suisse continued.

Shares of Phillips 66 were up by 2.30% to $91.10 in mid-morning trading on Monday.

Separately, TheStreet Ratings team rates PHILLIPS 66 as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate PHILLIPS 66 (PSX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, notable return on equity and attractive valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.

You can view the full analysis from the report here: PSX

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