Zacks Investment Research upgraded shares of Phillips 66 Partners (NYSE:PSXP) from a hold rating to a strong-buy rating in a research note issued to investors on Tuesday, Zacks.com reports. The brokerage currently has $59.00 price target on the oil and gas company’s stock.
According to Zacks, “Phillips 66 Partners is least/minimally exposed to the fluctuations in commodity prices since it generates stable fee-based revenues from the diverse midstream energy assets across the Gulf Coast, Central, Western and Atlantic areas of the United States. Thus, by providing transportation services to the third parties and Phillips 66, the partnership’s cash flows are highly stable and predictable. Notably, from fourth quarter 2013 to fourth-quarter 2018, Phillips 66 Partners raised its quarterly cash distributions by 30% at a compound annual growth rate. Moreover, the partnership is likely to steadily increase cash distributions since it has a solid backlog of organic growth projects. Among the organic projects, the Gray Oak Pipeline system is a notable one. Gray Oak is likely to partly solve the pipeline bottleneck problem in the prolific Permian basin.”
A number of other equities research analysts also recently weighed in on the company. Jefferies Financial Group upgraded Phillips 66 Partners from a hold rating to a buy rating in a report on Thursday, December 20th. ValuEngine upgraded Phillips 66 Partners from a sell rating to a hold rating in a report on Saturday, March 9th. Stifel Nicolaus downgraded Phillips 66 Partners from a buy rating to a hold rating and boosted their price target for the company from $50.00 to $52.00 in a report on Monday, February 11th. Bank of America reiterated a neutral rating and issued a $53.00 price target (up from $46.00) on shares of Phillips 66 Partners in a report on Thursday, February 7th. Finally, Credit Suisse Group lowered their price target on Phillips 66 Partners from $61.00 to $59.00 and set an outperform rating for the company in a report on Monday, February 11th. Two investment analysts have rated the stock with a sell rating, seven have given a hold rating, three have issued a buy rating and one has given a strong buy rating to the company’s stock. Phillips 66 Partners presently has a consensus rating of Hold and an average price target of $56.73.
Phillips 66 Partners (NYSE:PSXP) last announced its earnings results on Friday, February 8th. The oil and gas company reported $1.09 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.10 by ($0.01). Phillips 66 Partners had a net margin of 53.57% and a return on equity of 48.73%. The business had revenue of $393.00 million during the quarter, compared to analyst estimates of $375.17 million. During the same period in the previous year, the company earned $0.83 earnings per share. The business’s revenue for the quarter was up 18.7% on a year-over-year basis. Sell-side analysts expect that Phillips 66 Partners will post 4.43 earnings per share for the current fiscal year.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Toth Financial Advisory Corp grew its stake in Phillips 66 Partners by 479.5% during the 1st quarter. Toth Financial Advisory Corp now owns 10,767 shares of the oil and gas company’s stock worth $564,000 after buying an additional 8,909 shares during the last quarter. Deutsche Bank AG grew its stake in shares of Phillips 66 Partners by 15.5% in the fourth quarter. Deutsche Bank AG now owns 138,150 shares of the oil and gas company’s stock worth $5,817,000 after purchasing an additional 18,562 shares in the last quarter. American Century Companies Inc. grew its stake in shares of Phillips 66 Partners by 59.3% in the fourth quarter. American Century Companies Inc. now owns 6,838 shares of the oil and gas company’s stock worth $288,000 after purchasing an additional 2,546 shares in the last quarter. Municipal Employees Retirement System of Michigan bought a new position in shares of Phillips 66 Partners in the fourth quarter worth $5,408,000. Finally, MetLife Investment Advisors LLC grew its stake in shares of Phillips 66 Partners by 27.6% in the fourth quarter. MetLife Investment Advisors LLC now owns 195,393 shares of the oil and gas company’s stock worth $8,228,000 after purchasing an additional 42,243 shares in the last quarter. Hedge funds and other institutional investors own 42.79% of the company’s stock.
Phillips 66 Partners Company Profile
Phillips 66 Partners LP owns, operates, develops, and acquires crude oil, refined petroleum products, and natural gas liquids pipelines, terminals, and other transportation and midstream assets. The company operates pipeline assets in Lake Charles, Sweeny, Wood River, Borger/Ponca City, Billings, and Borger; terminal, rail rack, and storage assets in Louisiana, Texas, Illinois, Missouri, Kansas, Oklahoma, New Jersey, Washington, Wyoming, and Montana; marine assets in Lake Charles and Wood River; and natural gas liquids assets in Texas and Louisiana.
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