On Thursday, Could 22, Morgan Stanley analyst Joe Laetsch maintained a Maintain ranking on Phillips 66 (NYSE:PSX) inventory with an unchanged worth goal of $122.
His cautious view primarily stems from current shareholder disagreements and execution issues over the corporate’s monetary targets.
A refinery supervisor strolling by means of an array of pipes and pumping methods, recognizing the corporate’s huge refining energy.
On Could 21, Phillips 66 held its annual assembly of shareholders, the place it elected two nominees backed by the activist investor Elliott Administration. The election of those two, who’ve important refining and midstream expertise, displays properly on the corporate’s willingness to enhance operations and efficiencies. Nonetheless, the analyst stays involved as a result of, regardless of steady efforts over the previous couple of quarters, the corporate has been unable to enhance its refining EBITDA margin in direction of its mid-cycle targets.
The analyst additional notes that the corporate’s and Elliott’s nominees disagreed on some proposals, which signifies a scarcity of consensus among the many board members. Furthermore, he believes that the corporate lacks conviction in strategic selections reminiscent of integration and divestments, which slows down operational enchancment. Consequently, he prefers to stay on the sidelines.
Phillips 66 (NYSE:PSX) is an built-in downstream power supplier with a portfolio that features midstream, chemical substances, refining, advertising and marketing, specialties, and renewable fuels companies.
Whereas we acknowledge the potential of PSX as an funding, our conviction lies within the perception that some AI shares maintain better promise for delivering increased returns and have restricted draw back danger. In case you are on the lookout for an AI inventory that’s extra promising than PSX and that has 100x upside potential, try our report in regards to the least expensive AI inventory.
READ NEXT: The Greatest and Worst Dow Shares for the Subsequent 12 Months and 10 Unstoppable Shares That May Double Your Cash.
Disclosure: None.
On Thursday, Could 22, Morgan Stanley analyst Joe Laetsch maintained a Maintain ranking on Phillips 66 (NYSE:PSX) inventory with an unchanged worth goal of $122.
His cautious view primarily stems from current shareholder disagreements and execution issues over the corporate’s monetary targets.
A refinery supervisor strolling by means of an array of pipes and pumping methods, recognizing the corporate’s huge refining energy.
On Could 21, Phillips 66 held its annual assembly of shareholders, the place it elected two nominees backed by the activist investor Elliott Administration. The election of those two, who’ve important refining and midstream expertise, displays properly on the corporate’s willingness to enhance operations and efficiencies. Nonetheless, the analyst stays involved as a result of, regardless of steady efforts over the previous couple of quarters, the corporate has been unable to enhance its refining EBITDA margin in direction of its mid-cycle targets.
The analyst additional notes that the corporate’s and Elliott’s nominees disagreed on some proposals, which signifies a scarcity of consensus among the many board members. Furthermore, he believes that the corporate lacks conviction in strategic selections reminiscent of integration and divestments, which slows down operational enchancment. Consequently, he prefers to stay on the sidelines.
Phillips 66 (NYSE:PSX) is an built-in downstream power supplier with a portfolio that features midstream, chemical substances, refining, advertising and marketing, specialties, and renewable fuels companies.
Whereas we acknowledge the potential of PSX as an funding, our conviction lies within the perception that some AI shares maintain better promise for delivering increased returns and have restricted draw back danger. In case you are on the lookout for an AI inventory that’s extra promising than PSX and that has 100x upside potential, try our report in regards to the least expensive AI inventory.
READ NEXT: The Greatest and Worst Dow Shares for the Subsequent 12 Months and 10 Unstoppable Shares That May Double Your Cash.
Disclosure: None.
