Phillips 66 (NYSE:PSX) Maintains Hold Rating Amidst Crude Oil Price Declines

Font: Financial Modeling Prep  • Feb 20, 2026

• Jefferies maintains a "Hold" rating for Phillips 66 (NYSE:PSX) and raises its price target from $149 to $158.
• Expected decline in crude oil prices could benefit Phillips 66 by reducing raw material costs and potentially improving profit margins.
• Expansion of midstream operations aims to secure stable, fee-based revenues, countering crude price volatility.

Phillips 66 (NYSE:PSX) is a diversified energy manufacturing and logistics company. It operates in four segments: Midstream, Chemicals, Refining, and Marketing and Specialties. The company is a key player in the oil and gas industry, competing with firms like Valero Energy and Marathon Petroleum. On February 19, 2026, Jefferies maintained its "Hold" rating for PSX, with the stock priced at $155.41. Jefferies also raised its price target from $149 to $158.

Phillips 66 is well-positioned to benefit from the expected decline in crude oil prices. The U.S. Energy Information Administration (EIA) forecasts a drop in the West Texas Intermediate (WTI) spot crude price from $65.40 per barrel in 2025 to $53.42 in 2026, and further to $49.34 by 2027. This decline allows Phillips 66 to purchase raw materials at lower costs, potentially improving profit margins.

To counteract crude price volatility, Phillips 66 is expanding its midstream operations. This expansion aims to secure stable, fee-based revenues by leasing midstream assets to shippers. Projects like Pinnacle, Coastal Bend, and Dos Picos 2 are part of this strategy, with more growth initiatives planned through 2027. This move helps ensure a steady cash flow despite fluctuating crude prices.

Currently, PSX's stock price is $155.41, reflecting a 1.26% decrease, with a $1.99 drop today. The stock has fluctuated between $155.10 and $159.07 during the trading day. Over the past year, PSX has seen a high of $163.79 and a low of $91.01. The company's market capitalization is approximately $62.62 billion, with a trading volume of 2,260,576 shares on the NYSE.