In an Oct. 8 research note, analyst Justin Jenkins reported that Raymond James raised its target price on Phillips 66 (NYSE:PSX) to $120 per share from $117 “on higher conviction in earnings quality/outlook.” Currently, the energy company’s share price is around $102.71.
Raymond James expects Q3/19 to be another strong quarter for Phillips 66 (NYSE:PSX) and as such, increased its earnings per share (EPS) forecast on the company to $2.55 from $2.30. Similarly, due to recent strength in refining margins, the investment bank boosted its Q4/19 EPS estimate to $2.03 from $1.78, which is above consensus’ projected $1.97 EPS.
Jenkins described Phillips 66 (NYSE:PSX) as a “high-quality story.” He noted it has “strong cash-generating assets that support growth in the higher-value Midstream and Chemicals segments to drive earnings power higher over time.”
“Importantly, while the growth outlook remains solid, we also believe the strength of the refining assets that can be realized in the coming years remains under appreciated. With an excellent management team that has a keen focus on continued discipline in capital allocation and business optimization, we view PSX as a core holding,” Jenkins stated.
Target Price Raised On ‘One Of The Highest-Quality Stories’ In Oil & Gas
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