CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target price at $115, which reflects a 7.1x multiple of our projected 2024 operating cash flow, slightly above PSX’s historical forward average. We raise our 2023 EPS estimate to $15.71 from $14.55 and 2024’s to $14.60 from $12.19. Q3 EPS of $4.63, vs. $6.46, missed consensus estimates by $0.10. Q3 refining margins ($18.96/b) fell 29% Y/Y but grew 24% sequentially, driven by higher market crack spreads, partially offset by inventory hedge impacts, lower secondary product margins, and lower Gulf Coast clean product realizations. Q3 crude refining utilization (95%) rose two percentage points sequentially due to crude oil throughputs increasing by 3%; however, PSX guided crude oil utilization to be in the low 90% range in Q4, which we think is due to seasonality and minimum turnaround activity. We see PSX with free cash flow in the range of $5.5 billion in 2023 (vs. $8.6 billion in 2022) and $5.4 billion in 2024. Shares currently yield 3.8%.