Phillips 66 Shares Dip As BofA Downgrades To Neutral

BofA Securities downgraded Phillips 66 (NYSE:PSX) to Neutral from Buy and raised its price target to $147 from $144, sending shares down more than 1% in premarket trading Wednesday.

The analysts said while sum-of-the-parts value remained embedded in the company’s midstream operations, the outlook for natural gas liquids had weakened with slower U.S. liquids growth and downstream overcapacity. They also flagged a softer outlook for chemicals.

BofA lifted price targets for peers, raising PBF Energy to $21 from $16 and Delek US to $24 from $14, citing benefits from crude spreads and small refinery exemptions. The firm assumed a 50% probability of Delek receiving further exemptions through 2027.