-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $190, raised $12, reflects a combination of relative valuation and DCF model analyses. On a relative basis, we apply an 8x multiple of enterprise value to projected 2027 EBITDA, above PSX's historical forward average. Our choice of a premium multiple is predicated on what we see as a strong refining margin environment in 2027. Our DCF model yields a value of $200 per share, using medium-term free cash flow growth of 5% per year and terminal growth of 2%, discounted at a weighted average cost of capital of 6.8%. We raise our 2026 EPS estimate by $4.74 to $15.54 and 2027's by $2.85 to $15.88. Our downgrade is on valuation, with shares up 37% YTD, and now trading slightly above its historical forward average. We do think the refining margin environment is likely to be strong in the near term, helped by a wide divergence between Brent and WTI crude oil benchmarks. However, we believe upside potential is largely priced into the shares at this point.