Piper Sandler Stays Neutral on Phillips 66 (PSX) After Permian Basin Investor Trip

Phillips 66 (NYSE:PSX) is included among the 14 Best US Stocks to Buy for Long Term.

Piper Sandler increased the firm’s price target on Phillips 66 (NYSE:PSX) to $171 from $170 on December 5, and maintained a Neutral rating on the stock. The firm highlighted the company’s investors’ trip to the Permian Basin, in which it showcased the growth and potential of its Midstream business. The segment is usually overlooked by investors, despite contributing 40% of the expected 2025 EBITDA and $500 million in projected growth over the next two years.

In the third quarter of 2025, Phillips 66 (NYSE:PSX)’s Midstream results decreased due to lower margins. However, the company expects to achieve $4.5 billion in Midstream EBITDA by 2027. The company’s cash position and solid balance sheet make it stand out among its peers. With an operating cash flow of $1.2 billion in the recent quarter, it has been a strong dividend contender. Moreover, it had nearly $2 billion available in cash and cash equivalents at the end of the quarter.

Phillips 66 (NYSE:PSX) is an American multinational oil refining company that also operates in the US and Europe.

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