Phillips 66 (NYSE: PSX) rose more than 2.5 percent in trade on June 14 after several Wall Street analysts upped their rating. On June 15, PSX was trading at $102.38.
BMO Capital analysts boosted their target price for Phillips 66 (PSX) shares to $132 on Tuesday, June 14th, and issued an overweight rating. This week, Wells Fargo increased its target price for the company’s stock. Experts predict that the stock will grow to $127 because of strong expectations for the refining behemoth’s profit in the second quarter.
Wells Fargo and BMO Capital’s price estimates for Phillips 66 (PSX) shares are now among the highest among analysts, indicating that the industry is hot.
PSX is a transportation, energy processing, and other associated activities-focused oil and gas company.
The industry’s expansion is being fueled by rising oil and oil product prices. Gas prices in the United States have risen to an all-time high of $5 a gallon. However, because the price of gasoline has grown faster than the price of crude oil, corporations like Phillips 66 (PSX) have improved their profit margins.
The extra revenue will be used not just to pay down debt, but also to restart share repurchases and raise dividends in the future. A portion of the funds can also be used to upgrade and pay a fine.
In April of this year, a joint venture between Chevron and Phillips 66 (PSX) revealed its plans to invest $118 million to upgrade petrochemical factories and pay more than $3 million in fines for breaking air purification laws, after an agreement with the US Department of Justice.
In the last month, the stock has lost 1.25 percent, gained 24.44 percent in the last three months, and gained 36.84 percent in the last six months. PSX had price volatility of 4.49 percent in the last week and 3.39 percent in the previous month.