Plan could double the stock price

Article Excerpt

PHILLIPS 66 $96 is a buy. The company (New York symbol PSX; Manufacturing Sector; Shares outstanding: 407.7 million; Market cap: $39.1 billion; Dividend yield: 4.7%; Takeover Target Rating: Medium; www.phillips66.com) refines and transports oil and gas, operates gas stations, and owns 50% of a chemical firm (Chevron Corp. is partner). ConocoPhillips (New York symbol COP) spun off its midstream (pipelines and storage) and downstream (refining and gas stations) assets on May 1, 2012, as Phillips 66. Activist investor Elliott Investment Management revealed that its stake in Phillips 66 had increased to $2.5 billion, up from $1 billion in November 2023, when it first took a stake in the company. Elliott would like to see Phillips sell or spin off its midstream pipeline business. It also wants more independent directors. The activist feels these moves could increase the stock price to $200. Phillips 66 is a buy. buy…