BMO Capital raised its price target on Phillips 66 from $260 to $310 while maintaining an Outperform rating, implying 13% upside from current levels and exceeding the stock's all-time high of over $274 reached earlier this month. The call comes as Phillips 66 has rallied more than 110% since the start of 2026, driven by a sharp surge in global refining margins amid the war in the Middle East and a wave of Ukrainian attacks on Russian refineries that have tightened worldwide refining capacity. BMO cited Phillips 66's integrated business model, noting it has outperformed its individual segments, with Refining and Renewables as cyclical leaders and a favorable medium-term outlook for Midstream. The company reported second-quarter net income of $3.85 billion, up from $877 million a year earlier and its strongest quarterly profit since Russia's invasion of Ukraine in 2022, while net debt fell nearly 25% sequentially to $16.5 billion, keeping it on track to bring net debt below $16 billion by the end of 2026. In July, Phillips 66 approved a $10 billion expansion of its share repurchase program, though the stock remains vulnerable if refining margins retreat from elevated levels and earnings expectations normalize.
Phillips 66BMO raised its Phillips 66 price target to $310 from $260 while maintaining Outperform, implying 13% upside.
Valero Energy Corporation
Bank of Montreal
