The firm said it raised its rating on the energy manufacturing and logistics company based on its belief that the weakness in oil creates an entry point, as the lower prices will not affect long term forecasts, or management's ability to build a larger and higher multiple business over the next few years.
"Phillips 66 higher multiple growth strategy is underpinned by investment in growth assets...we believe Phillips 66 asset footprint will allow the capture of other opportunities over time," Credit Suisse said.
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Credit Suisse has a $95 price target on Phillips 66 stock.
Separately, TheStreet Ratings team rates PHILLIPS 66 as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PHILLIPS 66 (PSX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins."