Analyst Upgrades Phillips 66 (PSX), Raises Price Target by $42

Phillips 66 (NYSE:PSX) is included among the 14 Best Oil and Gas Stocks to Buy According to Hedge Funds.

Analyst Upgrades Phillips 66 (PSX), Raises Price Target by $42

Phillips 66 (NYSE:PSX) is a diversified and integrated downstream energy provider that manufactures, transports, and markets products.

On May 27, Mizuho analyst Nitin Kumar upgraded Phillips 66 (NYSE:PSX) from ‘Neutral’ to ‘Outperform’, while also raising the firm’s price target on the stock from $170 to $212. The revised target indicates an upside of more than 20% from the current price level.

The upgrade was driven by Phillips 66’s improving refining operations, successful execution of strategic initiatives, and greater exposure to the rising refining and chemicals margins. Moreover, Mizuho cited the company’s “enhanced” earnings outlook for the price target boost.

Phillips 66 (NYSE:PSX) delivered a surprise adjusted profit of $0.49 per share and topped estimates by $0.88 in its Q1 2026 report last month. The strong performance was driven by a sharp rise in refining margins and higher capacity utilization, which helped the company offset the ​impact of volatile commodity prices. US refining margins, measured by the 3-2-1 crack spread, surged by around 73% YoY on average during the first quarter.

Oakmark Select Fund stated the following regarding Phillips 66 (NYSE:PSX) in its Q1 2026 investor letter:

“Phillips 66 (NYSE:PSX) was the top contributor during the quarter. The U.S.-headquartered downstream energy company’s stock price rose as it benefited from higher crack spreads (the difference in price between crude oil and refined petroleum), heightened geopolitical risk and solid fourth-quarter 2025 earnings. Fundamental results have been encouraging, and we believe PSX is set to be a major beneficiary of rising crack spreads. We continue to see PSX as a durably advantaged energy company focused on returning cash flow to shareholders.”

While we acknowledge the risk and potential of PSX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PSX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Best Nuclear Power Stocks to Buy According to Wall Street Analysts and 12 Best LNG Stocks to Buy in 2026

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1