Update shared on27 Aug 2025
Fair value Decreased 1.03%Analysts have slightly lowered Phillips 66’s price target to $136.00, reflecting near-term caution due to potential post-proxy battle selling pressure and high Q2 expectations, despite an improved medium-term refining outlook and a strong balance sheet.
Analyst Commentary
- Bullish analysts cite positive earnings revisions expected in the second half of the year, supported by distillate strength and tightening global product supply/demand balances forecasted for 2026 and 2027.
- Refining segment outlook has improved, prompting upward price target revisions, with expectations for margin recovery in Chemicals and continued strong refining performance into 2026.
- Phillips 66 is viewed as a best-in-class, diversified business with a robust balance sheet, which has strengthened its investment case amid recent sector volatility.
- Bearish analysts warn of potential near-term selling pressure following management's proxy battle win against Elliott, increasing the risk of an Elliott exit from the stock.
- Some caution persists regarding the company’s near-term prospects amid sector rallies, with analysts flagging a high bar heading into Q2 results and possible modest pullbacks in the independent refiner group.
What's in the News
- Repurchased 3,545,412 shares for $395.17 million, completing the buyback of 89,951,989 shares (20.23%) under the 2019 repurchase program.
- Added to several Russell indexes, including Midcap Growth, Midcap Value, Midcap, 1000 Growth, 3000 Growth, 3000E Growth, and their respective benchmarks.
- Dropped from the Russell Top 200, Russell Top 200 Value, and their respective benchmarks.
Valuation Changes
Summary of Valuation Changes for Phillips 66
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $137.42 to $136.00.
- The Future P/E for Phillips 66 remained effectively unchanged, moving only marginally from 12.44x to 12.31x.
- The Discount Rate for Phillips 66 remained effectively unchanged, moving only marginally from 7.39% to 7.37%.
Disclaimer
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