Phillips 66 price target raised by $11 at Morgan Stanley, here’s why

Morgan Stanley analyst Joe Laetsch raised the firm’s price target on Phillips 66 to $136 from $125 and keeps an Equal Weight rating on the shares. Refining margins over the past year were supported by strong demand, low product inventories, and tight supply, driving a year of solid results, notes the firm, which thinks refined product demand should continue to grow despite the view that the global economy is set to slow modestly next year. The firm, which also sees risks to the timeline for new capacity, sees supply and demand together helping keep cracks elevated relative to history, the analyst tells investors in a Refining & Marketing 2024 outlook note.